Cisco reports 61% increase in Q4 earnings

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Cisco Systems has reported net sales of $5.72 billion for the fourth quarter of fiscal 2000, compared with $3.56 billion for the same period last year, an increase of 61%. Pro forma net income was $1.20 billion or $0.16 per share, compared with $710 million or $0.10 per share, increases of 69% and 60%, respectively.

During the fourth quarter, Cisco acquired Atlantech Technologies, JetCell, PentaCom, Qeyton Systems and Seagull Semiconductor for approximately $1.39 billion. Additionally, Cisco acquired ArrowPoint Communications, InfoGear Technology, and SightPath, which were accounted for as poolings of interests.

Actual net income for fiscal 2000 was $2.67 billion or $0.36 per share, compared with $2.02 billion or $0.29 per share for 1999.

“We predicted five years ago that we were in the midst of a second industrial revolution that would determine the prosperity of companies, countries, and individuals. Today, the internet continues to drive the strongest US economy in history,” said John Chambers, Cisco CEO. “We were very pleased with the balance of our business across all key geographies, products, and lines of business.”

In the service provider marketplace, Cisco continued to advance its strategy for New World integrated data, voice, and video networks and made progress in each of its key areas including optical networking, wireless solutions, and voice-transition technology. In the optical market, Cisco expanded its portfolio of internet-scale, carrier-class solutions by buying Qeyton Systems, a developer of metropolitan dense wave division multiplexing technology.

In the enterprise market, Cisco entered into an agreement with Brocade Communication Systems and announcing its intent to acquire NuSpeed Internet Systems. Both transactions will enable companies to store, retrieve, and back-up data more efficiently by interconnecting storage area networks over a single IP-based infrastructure.

“We see no indications in the marketplace that the radical internet business transformation is slowing – in fact, we believe it is accelerating globally,” concluded Chambers.

Cisco Systems

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