Cisco Systems' fiscal third quarter results were solid as the company avoided the shortfalls rivals faced.
The company reported third-quarter earnings of $2.2 billion, or 40 cents a share, on revenue of $11.6 billion, up 6.6 percent from a year ago. Non-GAAP earnings were 48 cents a share.
Wall Street was expecting earnings of 47 cents a share on revenue of $11.59 billion. Going into Cisco's earnings, analysts were expecting a mixed quarter. After all, Cisco rivals Juniper, Riverbed and Polycom all struggled with their most recent financial results.
In a statement, Cisco CEO John Chambers said the company plans to grow profits faster than revenue. "In a cautious IT spending environment, we continue to outperform our competitors," he said.
On a conference call, Cisco CEO John Chambers said:
- The company has taken share in the service provider market. "We remain number one or number two in almost every product market where we play," said Chambers.
- Cisco maintained share in the enterprise and commercial market.
- UCS server revenue was up 57 percent from a year ago.
By the numbers:
- Research and development spending was $1.36 billion in the third quarter, down from $1.43 billion a year ago.
- Inventory turns were 11.5 in the third quarter, up from 11.1 a year ago.
- Cisco ended the quarter with $48.4 billion in cash and equivalents.
- Cisco generated $3 billion in cash flow in the third quarter.
- Days sales outstanding were 31, down from 37 a year ago.