Cisco reported net sales up 5.4 percent to USD 12.2 billion in its fiscal third quarter to 27 April, compared to USD 11.6 billion in the year-earlier period. The company’s operating income rose to USD 2.94 billion, or 28.2 percent of revenue, from USD 2.75 billion, or 28.6 percent, in the previous third quarter. Net profit came in at USD 2.48 billion, compared to USD 2.17 billion a year earlier. EPS increased to USD 0.46 from USD 0.40.
Cisco said it made a 62.6 percent gross margin on USD 7.13 billion of net sales in the Americas region, a USD 65.3 percent margin on USD 3.13 billion in EMEA and 61.1 percent on USD 1.96 billion in APJC. Across all geographies, switching equipment accounted for 29 percent of revenue, followed by NGN routing equipment with 18 percent and service provider video equipment with 11 percent. Service revenues grew 7 percent to USD 2.66 billion, or 22 percent of total revenues.
Cisco expects to report fourth quarter sales up 4-7 percent on a year earlier to USD 12.16 billion-12.51 billion, and EPS of USD 0.50-USD 0.52. Chairman and CEO John Chambers said the company saw encouraging signs in the US and other parts of the world and was well positioned to meet the increased pace of change.
