Cisco’s profits rise 14.5 percent

New York TimesMay 15, 2013 

— Cisco Systems reported higher earnings Wednesday for its third fiscal quarter.

Cisco, based in San Jose, Calif., said net income rose 14.5 percent to $2.5 billion, or 46 cents a share, from the year-ago quarter. The company said revenue climbed 5.4 percent, to $12.2 billion.

Using nonstandard accounting measures, Cisco had net income of 51 cents a share, up 6.3 percent from a year earlier. Wall Street analysts had projected 49 cents a share and revenue of $12.18 billion, according to a survey of analysts by Thomson Reuters.

“Cisco is executing at a very high level in a slow but steady economic environment,” Chief Executive Officer John Chambers said in a statement. “The pace of change is increasing.”

Still the undisputed leader in the network switching and routing equipment that powers much of the Internet, Cisco has in recent years faced new competition, both from fast switches that use cheaper parts, and networking systems that rely more on software instead of Cisco’s proprietary hardware.

Cisco has responded in part by branching into new businesses, such as video. The company is also stressing growth in its consulting and services business, which late last year was the focus of a corporate reorganization.

Cisco’s campus in Research Triangle Park houses more than 5,000 employees and contractors, making it the company’s second-largest site behind its San Jose headquarters.

Cisco announced in March that it was laying off about 500 employees. The cuts came after several restructurings in recent years that led to larger job losses.

Last summer, Cisco announced plans to eliminate 1,300 jobs, or about 2 percent of its workforce. That was on top of an earlier reduction that cut about 6,500 workers globally.

Staff writer David Bracken contributed.

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