Cisco Systems Inc. said Tuesday that its earnings rose 18 percent in the latest quarter as large U.S. companies began investing in big-ticket networking gear again.
According to an Associated Press article, orders rose 9 percent from last year, but the federal government and European customers continued to hold back.
“The U.S. has to lead the total globe out of this slowdown,” said John Chambers, Cisco CEO.
“ItInformation Technology’s not going to come from Europe. While we were all hopeful about emerging countries, they just aren’t going to be strong enough,” he added.
Cisco’s stock closed at $18.04, a $1.19 or 7.1 percent increase, in extended trading Tuesday.
The company made $2.1 billion, or 39 cents per share, in its fiscal first quarter, a rise from last year’s $1.8 billion, or 33 cents per share during the same period.
Cisco earned 48 cents per share if the cost of stock-based compensation and certain other items are excluded.
In that scenario, FactSet said Cisco’s earnings were 2 cents above the average analyst estimate.
According to the AP article, the company achieved revenue of $11.9 billion, a 5.5 percent rise which beat Wall Street estimates.
Sales of its core products such as routers and switches were weak, while some up-and-coming product categories like wireless network equipment and servers for data centers reported good sales numbers.
Cisco’s service segment, which builds networks for companies, rose 12 percent from last year.