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Market Update

Cisco Cruises Ahead of Expectations Once Again

Cisco put to rest fears that Y2K would damage first-quarter results.

Cisco (CSCO) put to rest fears that Y2K concerns would damage first-quarter results. The company posted yet another stellar quarter, earning $0.01 per share better than analysts had expected.

Even more impressive was Cisco's seventh consecutive quarter of increased sales growth. Cisco's revenues grew  by 7% sequentially from last quarter, and almost 50% over the same quarter last year. Considering that the company's annual sales now exceed $13 billion--landing it among the biggest 20 technology companies trading in the U.S.--this is no small feat.

In the near future, management said it will focus on parlaying its strengths in data networking into the area of voice transmission. Efforts to converge the two standards of transmission have yet to be successful, but the company considers it essential to be a leader in this area. The company is also likely to continue to grow through acquisition, as it showed in its latest quarter with its purchase of Aironet.

Although management noted increased concern over its rival Nortel (NT), Cisco is still the dominant player in the networking-equipment industry.