Thursday, 9 August 2007

Cisco Beats Forecasts, Reports Profits

Citing strong demands from telecom carriers, networking giant Cisco Systems Inc. has reported a better-than-expected quarterly profit and outlook.

Cisco, based in San Jose, California, makes routers, switches and other network equipment used mostly by telecom operators globally. After the results were announced, Cisco Chief Executive John Chambers dismissed market concerns that Cisco could be hurt by slower US economic growth.

“I know there have been a number of mixed views about the strength of the US IT spending, especially in large accounts. I am very pleased to share with you not only that our US business was very strong, but the balance was good across all customer segments,” he told analysts.

Cisco's fiscal fourth-quarter profit rose to USD 1.9 billion from USD 1.5 billion in the corresponding period a year ago.

Cisco has been particularly bullish about the Indian market where it has decided relocate 20 per cent of its toppers. India is the fastest growing telecom market in the world adding as much as seven million new subscribers each month and carriers are building infrastructure as customer base increase and as they expand to rural areas.