Q4 net income jumps 25% for Cisco

Networking giant reports better-than-expected results, raises revenue forecast.

  • E-Mail
By  Michele Howe Published  August 8, 2007

Networking equipment maker Cisco yesterday reported a 25% increase in net income for its fourth quarter of 2007 ended July 28.

The world's largest maker of networking and routing equipment registered net income of US$1.9 billion on a GAAP basis for the fourth quarter of 2007 in comparison to net income of US$1.5 billion in the fourth quarter of 2006.

Sales during the quarter rose 18% year-over-year to US$9.4 billion with both routing revenue and switching revenue experiencing double-digit growth.

Cisco chairman and CEO John Chambers attributed the strong results, which beat analyst expectations, to the company's balanced approach across products, services, geographies and customer segments plus its ability to respond to market transitions.

"Cisco delivered another record quarter with great execution across the company," he stated.

"As we turn our attention to the next fiscal year, we believe that we are headed into a new era in networking that we define as the second phase of the Internet. We expect that this phase will be driven by collaboration and Web 2.0 technologies," he added.

For the full year 2007, Cisco posted 31.4% growth in net income to US$7.3 billion and 22.6% growth in sales to US$34.9 billion.

Boosted by the results, Chambers subsequently raised Cisco's future revenue forecast to a long-term revenue growth target of between 12% and 17% year-on-year from a previous range of 10% to 15%.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code