Cisco reports first quarter earnings

Other earnings include net income on a generally accepted accounting principles (GAAP) basis of US$2.2 billion or US$0.37 per share, and non-GAAP net income of US$2.5 billion or US$0.42 per share.

"Cisco delivered solid revenue and earnings growth in what is clearly a very challenging global economy," said John Chambers, chairman and CEO, Cisco.

"Our strategy and focus for managing the business through this market transition is clear - we will manage and prioritise our resources, invest in innovation, and build even stronger relationships with our customers to help enable their success," he added.

"The essential role that the network plays in driving business productivity and competitive advantage is more relevant than ever in this current macro-economic environment.

“Just as we helped our customers tap the productivity and competitive advantages afforded by the first wave of the Internet, once again we are leading the transition in this second wave to create new business models built for speed, scale, flexibility and productivity, enabled by the network," said Chambers.

According to Frank Calderoni, chief financial officer, Cisco, the company’s financial performance this quarter reflected its ‘ability to maintain profitability during a period of uncertainty’.

He said it had to focus on making calculated investments in strategic areas and carry out ‘prudent’ expense management to manage its financial position.