Cisco’s quarterly profit fell 18.8% but was ahead of expectations as the company yesterday reported an improving business outlook.
The networking firm’s Nasdaq stock price rose 2.83% to $23.95 in after-hours trading following the announcement.
Cisco chief John Chambers said the result reflected “strong sequential growth trends that meet or exceed expectations during normal economic times.”
“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,” he said.
Chambers said the previous quarter had been the “tipping point” for the business environment.
Cisco has had an active quarter as it builds fresh business away from its core networking base. As well as acquiring wireless IP firm Starent Networks and Chinese set-top box maker DVN, it has set up a cloud joint venture with EMC.
However, its $3.0 billion offer for videoconference firm Tandberg has met with resistance from key shareholders, who are demanding a higher price.
Chambers said Cisco’s “build–buy-partner” strategy was “running on all cylinders.” With $35.4 billion in cash and equivalents, it is equipped for further deals.