Cisco heralds economic recovery as profits surge
Cisco boss John Chambers has heralded "the second phase of the economic recovery" as he lifted the lid on the networking bellwether's second quarter results on Wednesday evening.
The vendor said it saw a recovery in enterprise networking spend during the three months to 23 January, leading to a 23.2% surge in net profit to $1.9bn (£1.19bn), while sales were also buoyant, up 8% to $9.8bn. Analysts polled by Thomson Reuters had called for around $9.4bn.
The bullish CEO said: "Our outstanding Q2 results exceeded our expectations.... We saw dramatic across the board acceleration and sequential improvement in our business in almost all areas."
"We are confident that our aggressive strategy of investing in the business during the downturn and our focus on innovation, operational excellence and productivity are driving our momentum and growth in the market," he added.
Cisco also had some good news for the IT jobs market; according to Chambers it plans to hire for between 2,000 and 3,000 positions in the coming quarter, having laid off a similar number last year.
Speaking on a conference call, Chambers predicted Q3 sales of a little over $10bn, remarking that the market appears to be seeing "one of the most robust and positive turnarounds I've [ever] seen".
The vendor's latest set of numbers will be a powerful confidence booster to a market beset by economic woes; John Chambers has remained upbeat about Cisco's performance through the recession, and at first glance it appears his optimism is rubbing off.
The results also provide extra proof, if proof were needed, that Cisco - which dominates the networking infrastructure sector and has well-documented designs on enterprise video and data centres - is now firmly entrenched in the group of 'elite' IT firms such as Hewlett-Packard, IBM and Microsoft that are considered 'too big to fail'.