By Sally Watson, 7 February 2002 07:37
NEWS Cisco has reported a 24 per cent drop in its net income for the second quarter but the results, as expected, topped analysts' estimates. Late on Wednesday the networking company posted a net income of $660m for the quarter ended 26 January, down from $874m a year earlier. Sales fell 29 per cent to $4.8bn from $6.6bn a year earlier, but were up eight per cent from Q1. The company's sales beat the $4.6bn predicted by Wall Street. President and CEO John Chambers called the quarter "very solid". "Our results reflect Cisco's unique position to help our customers with their business priorities - profits, cash flow and productivity," Chambers said in a statement. "I was especially pleased with our profitable market share gains and strong operational performance in a very challenging market, as well as our continued improvement to an already strong balance sheet." Citing two independent market research firms, Cisco said it had gained the top market share in December in the overall voice-over-IP market, as well as in all of the enterprise, local access network telephony, and IP phone segments. The company was forced to make an early disclosure of its results after accidentally sending a document containing financial details to 12,000 employees instead of to a single senior executive. The maker of network routing and switching equipment said it was offering the news in advance of its expected release time because the company "felt it was necessary to disclose this information publicly, given the broad internal distribution of the communication".
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