Cisco posted quarterly sales of $10.8 billion, net income on a generally accepted accounting principles (GAAP) basis of $1.9 billion or $0.33 per share, and non-GAAP net income of $2.5 billion or $0.43 per share. Net sales were up 27% year-over-year while net income rose 74% year over year. 
However, the figures were slightly below analyst expectations of $10.95 billion in sales and the company cited “mixed signals” for growth in the global economy.
“This was yet another very strong quarter with a number of record financial results for Cisco, closing the fiscal year in a tremendous position of strength–a compelling financial model, a well-tuned innovation engine and solid execution on our growth strategy,” said John Chambers, chairman and CEO, Cisco. “Whether the global economy continues to show mixed signals or not–the strength of our financial model and profit generation serves us well.”
Some highlights for the quarter:
- Cisco said its supply chain has stabilized but that it continues to experience some component shortages.
- Geographically, Emerging Market Orders were up 35% YoY, European orders were up in the mid-20% YoY, while AsiaPac, U.S. and Canadian orders were each up 20% YoY.
- By product category, Advanced Technology revenue was up 27% YoY, Switching revenue was up 27% YoY, and Routing revenue was up 15% YoY. Significantly, revenue for the CRS routing system was up 20% YOY, ASR revenue was up 150% YoY, and Nexus data center revenue was up 325% YoY.
- Cisco said data center virtualization is an especially hot segment. Video and collaboration are also hot.
- During the quarter, Cisco hired about 2,000 employees of which 70% were in the U.S. In California, Cisco added about 600 employees in the quarter — not counting acquisitions.
- Cash and cash equivalents and investments were $39.9 billion at the end of fiscal 2010, compared with $35.0 billion at the end of fiscal 2009, and compared with $39.1 billion at the end of the third quarter of fiscal 2010.
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