Tags: Revenues

Cisco Systems reports 40 percent improvement in profits

Networking equipment maker Cisco Systems has come out with their latest quarterly reports and the company has posted a 40% improvement in profits.

The company’s stock price rose more than 4 percent in after-hours trading after the news was revealed in the media.

The Cisco management has also now raised the revenue outlook for the next two quarters.

Market analysts are however worried about a sudden slowdown in orders from U.S. businesses in the quarter.

Samuel Wilson, a senior analyst for communications equipment for JMP Securities spoke about Cisco: “We’re clearly seeing a deceleration in U.S. enterprise — but the magic question is, is it a one-time bump? Or is it something more? If it’s something more, it will start to affect Cisco’s business.”

The company reported that it earned $2.1 billion for the quarter, or 33 cents per share.

Cisco Chief Executive John Chambers said in a statement: “It was clearly another very strong quarter — that really is the proof point that our vision of how the industry is playing out is working.”

Chambers added: “This obviously indicates a high degree of confidence in our strategy and business momentum. We believe that our vision, strategy, and execution are in great shape.”