The tech industry breathed a sigh of relief after Cisco reported a bigger than expected quarterly profit.
Cisco is one of those companies that shows the general state of the technology industry as it always tends to suffer when there is any downturn.
However this time the company saw higher demand for its routers and security products.
Cisco is shifting to high-end switches and routers and investing in new products such as data analytics software and cloud-based tools for data centres.
Revenue in the company’s routers Business rose five percent to $1.85 billion in the second quarter ended January 23, Cisco said.
Revenue in the switches business, the company’s biggest, fell four percent to $3.48 billion.
Its security business, which offers firewall protection as well as intrusion detection and prevention systems, recorded an 11 percent rise in revenue to $462 million.
Cisco boosted its current share buyback plan of $97 billion, of which $16.9 billion was remaining, by $15 billion.
The company forecast third-quarter adjusted profit of 54-56 cents per share and revenue growth of between one to four percent, excluding revenue from its customer premises equipment business, which it has sold.
Net income rose to $3.1 billion, from $2.40 billion last year. Cisco isn’t really boring, honestly.