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Cisco Storage Growing Up

Cisco Systems Inc. (Nasdaq: CSCO) took its storage networking financial numbers out of the closet today when CEO John Chambers claimed $40 million in revenues for the last quarter and approximately 540 customers for its storage group (see Cisco Q2 Profits Rise).

Cisco did not break out its storage numbers in the previous quarter when
Chambers admitted sales of its Fibre Channel switches failed to meet targets due to manufacturing and supply issues, as well as a lengthened sales cycle (see Cisco Still a Kid in Storage). Chambers said those problems were fixed this quarter.

"After a slow start, our storage networking picked up dramatically, Chambers told analysts on a conference call. He said storage networking made “obvious market share gain” and has won industry acceptance.

"Given the unique issues last quarter I would characterize our run rate this quarter in the low $30 million range, an approximate 70 percent-plus sequential increase," Chamber said. Cisco reported an 80 percent increase of customers from the previous quarter.

Chambers said the Advanced Technology group made market-share gains across the board. The group has six product lines: storage, IP telephony, optical networking, home networking, security, and wireless. “Advanced Technology appears to be working well."

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