Cisco 3Q net income rises 14 percent (Update)

May 15, 2013

Cisco's net income jumped 14 percent in the latest quarter as revenue at all four of its divisions rose for the first time in a year and a half.

Cisco earned $2.5 billion, or 46 cents per share, in its fiscal third quarter, which ended April 27. That's up from $2.2 billion, or 40 cents per share, a year ago. Excluding one-time items Cisco earned 51 cents per share in the latest quarter, and its revenue increased 5 percent, to $12.2 billion from $11.6 billion.

Analysts surveyed by FactSet expected 49 cents per share and $12.2 billion in revenue.

The networking equipment company's net income and revenue beat Wall Street's expectations and its stock gained $1.21, or 5.7 percent, to $22.42 in aftermarket trading after the release of the numbers. The stock fell 6 cents to $21.21 during Wednesday's regular trading session.

"We are starting to see some good signs in the U.S. and other parts of the world which are encouraging," Chairman and CEO John Chambers said in a press release.

Revenue in the U.S. improved and sales from emerging markets grew more than 10 percent.

As one of the largest technology companies in the world, Cisco's performance is widely regarded as a way to gauge the relative health of the technology industry. The San Jose, California, company cuts a broad swath, selling its routers, switches, software and services to corporate customers and government agencies around the world.

In addition, Cisco's fiscal quarters end a month later than most other major technology companies, giving it additional time to assess economic conditions.

The company said total orders rose 4 percent during the quarter. Orders in the Americas grew 7 percent. The company said government spending improved as local and state governments and education departments spent more money. Orders from the federal government decreased.

"We believe this balanced approach to growth is a positive signal for the U.S. economy going forward," Chambers said during a conference call. Orders from emerging markets like Russia, Brazil, China, and Mexico improved and the company said it is seeing some signs of improvement in Europe.

"You're beginning to see Europe bottom out with the exception of the South," said Chambers.

Cisco expects further signs of a slow and steady recovery in the fiscal fourth quarter. The company forecast adjusted net income of 50 to 52 cents per share and said revenue will grow 4 to 7 percent, to $12.16 billion to $12.51 billion.

Analysts expect income of 50 cents per share and $12.46 billion in revenue.

Explore further: Cisco beats estimates with 2Q earnings, sales (Update)

Related Stories

Cisco beats estimates with 2Q earnings, sales (Update)

February 8, 2012

(AP) -- Cisco, the world's largest maker of computer networking equipment, on Wednesday said that its net income jumped 44 percent in the latest quarter as it continues to put last year's slump behind it.

Cisco 1Q income up as US businesses buying again (Update)

November 13, 2012

Cisco Systems Inc., the world's largest maker of computer networking gear, said Tuesday that U.S. companies are starting to spend again, helping Cisco find more solid footing after some shaky months early this year.

Comcast profit rises 17 percent in 1Q

May 1, 2013

Comcast Corp., the nation's largest cable company and owner of NBCUniversal, says its net income rose 17 percent in the latest quarter, powered by continued strong results from its cable operations.

Recommended for you

Sydney makes its mark with electronic paper traffic signs

July 28, 2015

Visionect, which is in the business of helping companies build electronic paper display products, announced that Sydney has launched e-paper traffic signs. The traffic signage integrates displays from US manufacturer E Ink ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.