Business News
Cisco profits drop 18 per cent under high costs
May 11, 2011, 22:41 GMT
New York - Cisco Systems Inc, the maker of networking gear, Wednesday said its profits for the third quarter had drooped by 18 per cent over the same period last year, to 1.8 billion dollars.
The results were better than analysts expected, after Cisco lost about 50 billion dollars in market value over the past year.
The company is revamping management and scaled back on some businesses, under pressure from rivals like Hewlett-Packard Co.
Chief Executive Officer John Chambers, who has slashed jobs as he aims to regain dominance in networking, benefited from demand for routers last quarter.
'This quarter played out as we expected,' Chambers said in a statement. 'We have acknowledged our challenges. We know what we have to do. We have a clear game plan, and we are a company with a track record of market-shaping innovation.'
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