According to an article by Peter Stevenson for the Charlotte Observer, Cisco Systems, Inc. surpassed its 2nd fiscal quarter predictions as it announced its first sales increase since the recession. CEO John Chambers described the recovery as strong from a capital spending perspective.
Cisco earnings increase 23 percent to $1.9 billion or 32 cents per share. Revenue increased to 9.8 billion (8 percent) and there was a 17 percent increase of order growth.
Analysts predict Cisco sales to be $9.5 billion by the end of the current fiscal quarter which will end in April. Cisco predicts a 23 to 26 percent increase or $10 billion to $10.3 billion.
Chambers stated that he believed that the organization’s aggressive investment in the business in the downturn is currently driving their growth in the market.
Cisco’s announcement of their financial results indicates that businesses are making investments in technology despite the rough recovery from the economic recession. Here at the Information Management Forum, we have also noticed that member companies are also following the trend and are still continuing to make investments in IT spending.
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