Surging demand from corporates boosts Q4 profits: Cisco |
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Thu, 11 Aug 2005 06:05
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LONDON: Global leader in networking equipment Cisco Systems, reported net profits of $154 billion (£862m)in its fourth quarter ending July 30, up 12 percent from same period last year.
The company known for its switches and other internet traffic routing gear said turnover was $6.6 billion, up 11 percent, and demand for these products continued to grow. Profits were up across all its operations with corporate customers contributing the largest demand.
These results were very much in line with market expectations. The markets, incidentally, have been buzzing since Monday with talks about a possible takeover of Finnish mobile maker Nokia. Investors and analysts were not sure how far the talks were true.
Buying Nokia would increase Cisco’s presence in wireless equipment. Cisco is already known for its many acquisitions of start-ups. In 2000 the company took over 23 companies. In 2005 alone it has so far bought nine small, privately held companies, but very few of these deals were for over $100 million.
Nokia with its market value of about $72 billion would be a huge investment – the biggest, for Cisco. The news made Nokia share prices shoot up 3 percent on the Helsinki bourse Monday when the rumors hit the exchange. Cisco shares too, saw brisk trading and closed 2 percent up on Tuesday on the Nasdaq before the Q4 report.
A spokesperson for the company trashed the Nokia-acquisition rumors saying such a deal was not in line with Cisco’s key strategy of buying small companies for their technologies.
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