Cisco increases earnings projection, revealed impressive second-quarter results
Technology
Increase shows expenditure on network infrastructure enduring despite recession in economy
(Reuters) - Cisco Systems Inc. increased its full-year earnings projection and revealed impressive second-quarter results showing that expenditure on network infrastructure was enduring despite the recession in the economy.
The manufacturer of routers and other components for internet and computer networks claimed that clients were maintaining their investments in cloud computing, artificial intelligence and hybrid work solutions.
The company is also profiting from the loosening of supply chain restrictions brought on by the epidemic which crippled its operations last year and caused a huge accumulation of inventory.
According to Cisco it anticipates revenue growth of 9% to 10.5% and adjusted per-share profits of $3.73 to $3.78 for the next fiscal year. It had previously predicted profits per share of $3.51 to $3.58 and revenue growth of 4.5% to 6.5%.
Both its adjusted second-quarter earnings of 88 cents per share and sales of $13.59 billion exceeded market predictions compiled by Refinitiv.
In reaction to economic difficulties, the U.S. technology sector is currently undergoing cost-cutting and restructuring, which contributed to Cisco's outstanding performance. In November, Cisco made a roughly 5% job reduction announcement.
