US networking and enterprise communication technology vendor Cisco has posted exceptional third-quarter financial results, indicating that the US economic situation may be improving, as companies increase their IT spendings.
Cisco, the market leader in switches and routers for internet and networking, reported a 62.6 per cent increase in net profits, reported to be $2.2 billion, for the third quarter of the financial year.
The company is considered by many to be a bellwether for the IT industry, and its financial results appear to indicate a recovery for the US IT sector and economy as a whole, following the global financial meltdown.
Commenting on the development, Cisco Chairman and CEO John Chambers said: “We witnessed a return to strong balanced growth across geographies, products and customer segments that we haven't seen since before the global economic challenges began.”
Cisco's third-quarter financial results broke all predictions made by either the company or financial gurus on Wall Street, with Cisco posting a revenue of $10.4 billion, 27 per cent higher than last year's results.