Wednesday, November 7, 2007

Cisco First-Quarter Profit Raises 37 Percent

The profit of Cisco Systems Inc.’s in the first quarter has been reported to be jumped 37% because of the rising of sophisticated Internet machinery demand. The net income of this company was US$2.2 billion (compared in the year-ago period that only US$1.6 billion), which is means that profit has supplied US$0.35/share for three months ended Oct. 27.

Cisco System Inc., which is a California-based multinational company that concentrating its business in designing, selling, and servicing networking and communication technology, has been competing with Alcatel-Lucent SA, Nortel Networks Corp. and Juniper Network Inc. in making routers and switches that direct Internet traffic. However, Cisco seems has strong sales that make sure the company to climb up as the market leader.

Cisco kept focusing on its core business market, not only in the U.S., but also in other countries. The segment was expanding at a 20% clip last year. However, its growth has fluctuated since then, falling in the current quarter to the mid-single-digit range. The clients of Cisco in U.S have down to only 40% from its total U.S business.

Many big companies have been deciding to enlarge their business on the other area markets. You might have heard that Google, which is the world’s largest search engine, had decided to enter the mobile phone market. There are many factors that supporting those companies to take such risky strategies. Recently, Cisco has acquired an online meeting company WebEx Communication for US$3 billion and a set-top box maker Scientific-Atlanta for US$7.1 billion. We will need to follow more information about Cisco before approving some rumors among the business researchers.

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