San Francisco - Networking equipment giant Cisco reported a 19-per-cent drop in first quarter income Wednesday as sales dropped 13 per cent. However the results were above analyst expectations and marked the second quarterly improvement in a row, signalling that the large enterprises and internet firms that are Cisco's main customers were beginning to spend again as the recession eases.
The Silicon Valley bellwether said its sales were 9.0 billion dollars compared to 10.3 billion dollars in the year-ago quarter. Net income was 1.8 billion dollars, compared to 2.2 billion dollars last year.
Cisco Chairman and Chief Executive Officer John Chambers noted that the results marked a significant improvement from the previous quarter and showed that the company has reached a "tipping point."
"Our results continued to reflect strong sequential growth trends that meet or exceed expectations during normal economic times," he said in a statement. "We view the improving economic outlook, combined with solid execution on our growth strategy, as creating unparalleled opportunity to drive more value into the core of the network."
