Cisco FY1Q results

Cisco reported another record quarter with a net income up over 37% to $2.2bn in its first fiscal quarter, on strong sales of $9.6bn, up 17%. Routers and switches accounted for over half of total sales, with both segments growing respectively 18% and 8%. Its advanced technologies division (including S.A, Linksys, WebEx, ..) reported sales of $2.4bn, up 24%. Gross margin was $6.2bn or 64.6%, and operating margin was 40%. Cash flow from operations was $3.1bn, up 35%. Cisco continues to perform strongly and widen the gap with competitors in almost all figures. In one word, the BIC (Best In Class).

Cisco predicted that 2Q sales would be up 16% to $9.8bn, and that long-term growth would be between 12% and 17% per year.