Fiscal fourth quarter for Cisco shows 79 percent improvement

Friday, August 13, 2010

Cisco recently reported its earnings for its fiscal fourth quarter, announcing some impressive figures. The profit during the company's fourth quarter showed a 79 percent increase on rebounding revenue, despite margins decreasing for the second consecutive quarter.

The company is best known for its IT networking hardware and solutions, but has recently expanded its reach into the data-center space. Cisco has benefited from more companies outsourcing IT needs and using cost-effective, managed services such as automated data centers.

In addition to data centers, Cisco has also trended toward video capabilities, launching telepresence services such as video conferencing. More companies are turning toward this solution to conduct meetings or other aspects of businesses, as it saves expenses involved with travel and has proven to reduce carbon emission - keeping in line with today's push toward going green.

Overall revenue for Cisco increased by 27 percent, totaling $10.8 billion, which was right in line with the 25 percent to 28 percent jump analysts forecasted in May.

Cisco is also helping the IT job market by sticking to its plan to hire between 2,000 and 3,000 workers during the next few quarters.

With IT spending expected to increase during 2010 - ranging anywhere from 2 to 5 percent worldwide, depending on differing research firm opinions - Cisco's new initiatives could prove valuable as companies look to allocate more of their budgets toward technology.