Friday May 9, 05:44 AM

Cisco Q3 Revenue Approaches $10bn

ComputerWire Staff

Cisco has reported a 5.4% dip in net income to $1.8bn for the third quarter 2008, compared to $1.9bn in the year-ago quarter, on revenue up 10.4% at $9.8bn. Earnings for the quarter included a charge of $246m for the company's acquisition of a 20% stake in Nuova Systems.

The company said product revenue increased 9% to $8.2bn, while services revenue was up 12% at $1.6bn. Router revenue increased 11% to $2bn and switch revenue increased 3% to $3.2bn, while sales of so-called advanced technologies like wireless home routers and set-top boxes increased 13% to $2.4bn.

Geographically, in the US and Canada revenue increased 5% to $5.1bn, while in Europe it rose 9% to $2.1bn. Asia Pacific revenue was up 13% at $1bn, while in Japan sales increased 11% at $0.4bn. Emerging markets showed the biggest gain with revenue up 44% at $1.1bn.

During the quarter, the company announced the next phase of its corporate strategy for China, marked by new public-private collaborative programs delivering upon its $16bn multi-year innovation and sustainability initiative announced in November 2007.

The company also repurchased 2.5 billion shares for approximately $52.2bn, and has an authorized repurchase amount of $9.8bn with no termination date.