Cisco Systems delivered solid first quarter earnings and said it is focused on "execution in the areas we can control". In other words, capital spending is tailing off for some of Cisco's businesses. And one of the areas where's it's becoming most evident is government spending.
The company reported first quarter net income of US$1.9 billion, or 34 cents a share. Non-GAAP earnings were 42 cents a share. First quarter revenue was US$10.75 billion, up 19.2 percent from a year ago. Wall Street was expecting earnings of 40 cents a share on revenue of US$10.74 billion.
In a statement released Thursday, Cisco CEO John Chambers said he was pleased with the company's "solid financial results, during a challenging economic environment".
Read more of "Cisco earnings: Challenges multiply, outlook disappoints" at ZDNet.