Cisco Systems reported Q1 revenues of $5.1 billion, up 8.5% from the $4.7 billion reported in the previous quarter and 5.3% over the same period last year. Net income increased to $1.1 billion from $982 million in the prior quarter and $618 million one year ago. President and CEO John Chambers described the results as "a solid quarter of continued operational excellence and year-over-year growth. We saw strength across our core switching and routing businesses, as well as traction in our advanced technologies." Some highlights:
- Switching revenues were up approximately 10% sequentially over Q4 with the best growth in fixed switching.
Service provider revenues increased sequentially and year-over-year. However, Chambers said he was "a little concerned that our peers have not seen this improvement."
Advanced technologies, including IP telephony, optical, storage, wireless LAN, security and home networking saw 15% sequential revenue growth, with the networked home, security, optical, and IP telephony showing the best growth. Cisco said it was disappointed with its progress in the storage area networking market.
U.S. federal government business represented over 20% of total US enterprise orders.
Cash and cash equivalents and total investments were $19.7 billion, down $1.0 billion during the quarter. During the first quarter, Cisco repurchased $2.0 billion of common stock.
