Cisco Systems Report Stronger than Expected Revenue and Profit Owing to Strong U.S. sales
In the latest quarter, Cisco Systems reported revenue and profit that surpassed market expectations. Higher demand for the company's products in the US counter balanced weak sales in other markets.
On Wednesday, its shares climbed almost four percent during the after hour trading and that's good news for the overall network gear sector.
The recent result from Cisco also highlights the continued upturn in sales of the switches and routers manufactured by the company. Sale of these equipments were had gone down as there was a spending slowdown by telecom the carriers during the latter half of 2014.
Cisco Systems is one of the leaders that sells network equipment to different businesses. It controls almost half of the global market which is worth approximately $38 billion. It competes with rivals like Hewlett-Packard and Huawei Technologies and have left them behind in competition according to Gartner which is a market research firm.
Although the performance in the Americas was good yet the company said that revenue from other markets dropped slightly. In June, Cisco announced that it will acquire OpenDNS for $635 million. It is further investing in new products and services to boost its presence in the market.
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