Cisco CEO John Chambers said the first quarter was solid as the company weathered economic uncertainty and limited capex spending.
Cisco reported a better than expected fiscal first quarter, which CEO John Chambers attributed to the company's restructuring paying dividends in a "limited capital spending" environment.
The networking giant reported first quarter earnings of $1.8 billion, or 33 cents a share, on revenue of $11.3 billion, up 4.7 percent from a year ago. Non-GAAP earnings were 43 cents a share.
Wall Street was expecting non-GAAP earnings of 39 cents a share on revenue of $11.03 billion.
In a statement, Chambers said the quarter was solid. "Even in times of limited capital spending, intelligent networks are being deployed to drive new business, revenue and consumption models, enable new customer and employee experiences, and drive efficiencies," said Chambers.
On a conference call with analysts, Chambers added:
We are seeing stability in our switching portfolio from an order, market share and gross margin perspective.
Following restructuring changes earlier this year, Chambers cited several "foundational priorities" for Cisco that Chambers described as "key drivers of the future" of networking and the Internet. Those priorities focused on datacenters, integrated network architectures, and video strategy.
When asked during the Q&A session about how Cisco managed to grow revenue in a quarter that is supposed to be down, Chambers pointed toward several different areas where Cisco is seeing better numbers. That includes U.S. enterprise customers (up 15 percent), U.S. commercial customers (up 20 percent), and even government, which Chambers remarked was rather surprising.
Geographically, Chambers noted that Cisco saw surprising but healthy growth in Japan and that the Americas is solid at the moment. One area that could prove tumultuous for Cisco is Europe. This last quarter, Europe was stronger than anticipated with 13 percent growth.
But Chambers acknowledged that the next quarter will be a big challenge in Europe as he predicted only single digit growth.
Update, 2:00 p.m. PT: Added charts, conference call info.
Update, 2:41 p.m. PT: Added additional conference call info.
This item first appeared on ZDNet's Between the Lines blog.