Gross margin decreases to $5.8 billion
Cisco has reported net sales of $9 billion for the first quarter of 2010, a decreased of 12.7% compared to $10.3 billion for the same period last year.
John Chambers, chairman and CEO of Cisco, said: We view the improving economic outlook, combined with solid execution on our growth strategy, as creating unparalleled opportunity to drive more value into the core of the network. Simply said, we believe that key market transitions across collaboration, virtualisation and video will drive productivity and growth in network loads for the next decade, and are evolving even faster than expected.
Operating income for the quarter was $2.1 billion, compared to $2.4 billion for the first quarter of 2009. Gross margin decreased to $5.8 billion from $6.6 billion for the same period last year.
The company has posted a net income of $1.8 billion for the first quarter of 2010, a decrease of 18.8% compared to $2.2 billion for the same period last year. Diluted earnings per share was $0.30, a decrease compared to $0.37.
Mr Chambers, said: Our ability to launch four proposed acquisitions, the ecosystem-shifting coalition with EMC/VMware, and five new products and industry solutions into the Cisco pipeline in the past few months alone underscore this momentum. Our build buy partner innovation engine is clearly running on all cylinders, while our operational machine is pulling costs out of the business even as we scale new models for growth.
“Execution and results over time will demonstrate the long-term impact of this vision and strategy but a new model of productivity based on collaboration is clearly emerging and we believe this may be the most profound opportunity for businesses in our 25 years as a company.