Networking outfit Cisco did better than the cocaine nose jobs at Wall Street expected and has reported sales of $11.2 billion.
Wall Street thought that Cisco was going to report sales of under $11 billion, but it looks like the outfit’s cost cutting has paid off.
Analysts told Reuters that Cisco “beat a low bar” which is the sort of place we’ve all been to in Amsterdam. It managed to claw back a lot of its cash through cost cutting.
Cisco depends on government spending for about a fifth of its revenue, and governments are all retrenching.
In July Cisco said that it would cut 15 percent of its workforce and sell a set-top box factory in Mexico. The plan was to cut annual expenses by $1 billion.
However last week Cisco warned that government spending cuts could hurt more than it expected.
While the results were better than Wall Street expected, net income slid 36.3 percent to $1.2 billion from $1.9 billion last year.
Analysts want to know if chief exec John Chambers’ outlook for the current quarter is still darker than Sylvia Plath’s long suicide note, “The Bell Jar” or whether he has cheered up a bit and it reads like “Jude the Obscure”.
Cisco results are important as they are seen as the Bellwether of the rest of the IT industry.