By Jon Bernstein, 8 May 2002 08:57
NEWS Networking giant Cisco Systems returned to profitability this quarter turning a $2.7m net loss a year ago into a $729,000 surplus. Sales for the three months ending 30 April were up two per cent. Asked about the better than expected news, Cisco CEO John Chambers remained cautious. "Today we're in a 'show-me' economy," Chambers said in a question and answer session published on the company's corporate website. "[Customers] continue to spend very cautiously - that is until their confidence about future growth in their own revenues and profits occur. Simply put, while no one can say when capital spending is going to increase, when it does, we are well positioned to capture these opportunities." Chambers acknowledged that his company's improved financial standing had been achieved in part through cost cutting and job losses. He also pointed to "solid growth" in the UK and Germany. Product sales continue to make up the majority of Cisco's income. However, services revenue was up marginally on last year representing 17 per cent of total sales compared to 15 per cent in 2001. 10 Gigabit Ethernet products continue to be the preserve of 'early adopters' with Kyoto University in Japan and Curtin University of Technology in Australia the latest to deploy the networking kit. Cisco will hope to persuade blue chip customers to take the 10 Gigabit plunge later this year if its good start to the year is to continue.
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