Second Phase of Economic Recovery

Hal Kreitzman

After good quarterly results from Microsoft, EMC, and Nokia, Cisco Systems Inc. has now released strong second quarter 2010 results and the CEO stated the results signal an economic recovery has begun. Net revenues for the quarter were $9.8 billion, an eight percent increase from $9.1 billion in the same period last year. On a GAAP basis, net income for the quarter surged 23 percent from last year's quarter of $1.5 billion to $1.85 billion. John Chambers, Cisco's CEO, predicted the world has moved into the second phase of economic recovery and capital spending increases globally. He stated he saw dramatic across-the-board acceleration and sequential improvement in Cisco's businesses in almost all areas. Cisco reported higher sales in eight of the top 15 countries it sells to, up from two out of 15 in the previous quarter. Mr. Chambers also expects a rise in video on personal computers and cell phones as part of the next phase of the Internet. In response, the company plans to hire up to 3,000 people over the next several quarters. Cisco currently employs 66,000 people worldwide.