Chambers salutes Middle East order growth

Cisco CEO John Chambers has identified “very strong order growth” in the MEA region as a contributing factor to the networking vendor’s impressive set of fiscal third quarter results. Cisco reported a US$1.9 billion net profit on sales up 21% year-on-year to US$8.9 billion for the three months to the end of April.

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By  Andrew Seymour Published  May 9, 2007

Cisco CEO John Chambers has identified “very strong order growth” in the MEA region as a contributing factor to the networking vendor’s impressive set of fiscal third quarter results. Cisco reported a US$1.9 billion net profit on sales up 21% year-on-year to US$8.9 billion for the three months to the end of April. Chambers acknowledged that one of the highlights of the quarter was solid demand from the emerging geographies where Cisco is present. “We saw very strong order growth from the Emerging Markets theatre of approximately 40% year-over-year, with Eastern Europe leading the way with growth above 50% followed by the Middle East and Africa operations with growth in the mid-40s,” he said. He also pointed to the expanding role of Cisco’s service provider customers as another “key takeaway” of the quarter, which resulted in the vendor hitting record revenues. “Our technology and business architecture strategy is moving Cisco from a tactical or strategic partner for our service providers to a strategic business partner relationship in many of our accounts,” explained Chambers. Cisco’s performance was aided by a strong showing from the Scientific Atlanta set-top box business that it acquired for US$6.9 billion 18 months ago. The unit contributed sales of US$752m compared with US$407m the previous year as orders shot up 30%. Orders for Cisco standalone products, meanwhile, grew in the mid teens during the quarter.

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