Cisco Posts 11 Percent Growth In Q4

Accelerating traction in the SMB space and continued growth in advanced technologies helped Cisco Systems deliver “very solid” results for its fiscal fourth quarter, said Cisco president and CEO John Chambers.

The San Jose, Calif., networking giant Tuesday posted sales of $6.6 billion for its fourth quarter, up 11.1 percent from $5.9 billion in its 2004 fourth quarter. On a GAAP basis, net income for the quarter was $1.5 billion, or 24 cents per share, compared with $1.4 billion, or 20 cents per share, in the same quarter a year ago.

Speaking on a conference call Tuesday, Chambers said the company’s investment in expanding its presence in the commercial market, otherwise known as SMB, is paying off, with a percentage growth rate in the low 20s year over year. “I believe the commercial market has the highest probability of being our fastest growing market over the next five years,” Chambers said. The commercial segment has been the fastest growing business for Cisco in four of the past nine quarters, Chambers added.

The company's advanced technologies business -- including IP communications, security and wireless -- grew about 30 percent year over year, Chambers said. The company’s switching and router businesses each grew in the high single digits, he said.

For the year, Cisco posted sales of $24.8 billion, up 12.5 percent from sales of $22 billion in its fiscal 2004. Net income for the year on a GAAP basis was $5.7 billion, or 87 cents per share, compared with $4.4 billion, or 62 cents per share, for fiscal 2004.Cisco CFO Dennis Powell said the company expects growth of 10 percent to 15 percent for the 2006 fiscal year. For the first quarter, the company expects growth of 10 percent year-over-year.