Cisco Systems Inc. reported a slight increase in sales in the first quarter, as the company is trying to expand beyond its flagship network products. Silicon Valley giant, announced in August 6000 to reduce employment plans, reported that net income fell 8.4% to sales, which increased by 1.3%.
Cisco CEO John Chambers said in remarks prepared, characterized the results as strong first quarter the company ever. He had earlier predicted that in the first quarter revenue would flat flat within 1% .Shares Cisco, substantially in the last three months, by 2% in after-hours operations to $ 25.60.
The company is used for devices to connect the computer to know each other and to the Internet, but has diversified through acquisitions in many other markets. Cisco continues to maintain a dominant market share in the main business of switches and routers, but is quick to technological change and competition from rival life and new upstarts like Arista Networks Inc.which discussion recently on the market values and growing.
The company has also pointed out in several quarters weak sales in China, Brazil, Mexico, India and Russia. Latest Cisco job losses in the amount of 8% of the workforce from Cisco, were not drawn up by Mr Chambers as a way of openings for the employment of people with new skills as a cost-cutting measure.
Overall, Cisco said its net profit in the period 25 October came to 1.83 billion, or 35 cents per share, compared with net income in the period of US $ 2 billion, or 37 cents per share for the fiscal year above. Revenue rose to $ 12250000000 of $ 12.09 billion.Cisco said earnings excluding restructuring expenses and other items at 54 cents per share. Analysts, on this basis, expects earnings per share of 52 cents on revenue of $ 12.16 billion, according to Thomson Reuters.
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