Cisco Systems Inc said on Tuesday that US companies are starting to spend again, helping it find more solid footing after some shaky months early this year.
Cisco said its earnings rose 18 percent in the latest quarter, propelled by a renewed willingness by large US businesses to invest in big-ticket networking gear, even as the US government continued to hold back. Orders from large business customers in the US rose 9 percent from a year ago.
The firm made US$2.1 billion, or US$0.39 per share, in its fiscal first quarter, which ended on Oct. 27. That compares with US$1.8 billion, or US$0.33 per share, in the same period a year ago.
Excluding the cost of stock-based compensation and certain other items, Cisco would have earned US$0.48 per share. On that basis, Cisco’s earnings were 0.02 above the average analyst estimate, according to FactSet.
Revenue rose 5.5 percent to US$11.9 billion, beating Wall Street estimates.
The company forecast earnings for the current quarter of US$0.47 to US$0.48 per share.