Cisco Systems reported quarterly sales of $6.2 billion, compared with $5.6 billion for the third quarter of fiscal 2004, an increase of 10.1 percent, and compared with $6.1 billion for the second quarter of fiscal 2005, an increase of 2.1 percent. Net income (GAAP) was $1.4 billion or $0.21 per share, compared with $1.2 billion or $0.17 per share for the third quarter of fiscal 2004, and compared with $1.4 billion or $0.21 per share for the second quarter of fiscal 2005.
Cisco noted sequential growth of over 20% in the service provider market segment. On a year-over-year basis, sales to U.S. service providers grew 40%. IP telephony order increased 15% sequentially and over 35% y/y. Linksys shipped 980,000 VoIP phone adapters during the quarter.
“Today’s results are a clear indication that our integrated technology strategy is working–customers are realizing the benefits of an intelligent network architecture,” said John Chambers, president and CEO, Cisco Systems.
The sales breakdown by product category was:
- Routers, $1.44 billion, up 13% year-over-year
- Switches, $2.42 billion, up 2%
- Advanced Technologies, $1.13 billion, up 29%
- Other $196 million, down 5%
- Services, $998 million, up 12%
The sales breakdown by geography was:
- U.S. — 46%
- EMEA — 32%
- Asia/Pac — 10%
- Japan — 6%
- Americas Int. — 6%
The gross margin was 66.8%, compared with 68.8% a year ago.
Cisco currently holds $16.1 billion in cash and investments.
Approximately $2.0 billion of its own stock was repurchased in the quarter.
Employee headcount stands at 37,050 compared with 34,307 a year ago.
As for guidance, Cisco believes it can sustain annual growth in the 10% to 15% range.
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