Cisco reported first quarter net sales of $8.2 billion, net income (GAAP) of $1.6 billion or $0.26 per share, and non-GAAP net income of $1.9 billion or $0.31 per share. Scientific-Atlanta contributed net sales of $584 million during the first quarter of fiscal 2007, up be 21% YoY.
"We are in the midst of a market inflection that is changing the landscape of networking, and we believe the network is becoming the platform for the next generation of IT, revolutionizing the way people connect, communicate and collaborate. We laid the cornerstones for our strategy to capture this shift several years ago and believe we are now uniquely positioned for continued growth and increased share of our customers' total IT spend," said John Chambers, Cisco president and CEO.
Some operational highlights:
- Net sales were up 25% and net income was up 28% compared to the same period last year. Cisco's standalone growth (without Scientific Atlanta) for the current quarter (Q2) is expected to be in the 14-15% range YoY.
- Cash and cash equivalents and investments were $19.5 billion at the end of the first quarter of fiscal 2007, compared with $17.8 billion at the end of the fourth quarter of fiscal 2006.
- Routing revenue grew year over year by 13%, switching revenue grew year over year by 15%, and advanced technologies' revenue grew year over year by approximately 23% on a Cisco standalone basis.
- The Scientific Atlanta year over year growth rate was in the low 20s. Of particular interest was the shipment of 1.3 million digital set-top boxes, an 18% increase in units shipped versus Q1 of last fiscal year.
- Service Provider orders were up 23% YoY.
- Enterprise sales represent 45% of the company's business.
- Gross margin was 68.1%, compared to 65.3% in the preceding quarter.
- Since 2002, Cisco has repurchased $36.9 billion in its own shares.
- The U.S. and Canada account for 53% of orders, while Europe accounts for 20%, Emerging Markets accounts for 10%, Asia Pacific accounts for 12% and Japan accounts for 5%.
