New CEO named, will take over top spot on July 26
Networking giant Cisco on May 13 reported $12.1 billion in third-quarter earnings, which represents a year-over-year increase of 5%.
The reporting period covered ended on April 25. Net income was $2.4 billion, which equates to 47 cents per share.
CEO John Chambers called the results “solid” and attributed the success to the company’s strategic vision.
“Cisco is in a very strong position and we delivered another solid quarter,” he said. “Our vision and strategy are working and we are executing very well in a tough environment, as evidenced in our revenue growth, profitability, strong gross margins and cash generation.”
Revenue for the first nine months of fiscal 2015 was $36.3 billion, compared with $34.8 billion for the first nine months of fiscal 2014.
Net income for the first nine months of fiscal 2015, based on generally accepted accounting principles, was $6.7 billion or $1.29 per share, compared with $5.6 billion or $1.06 per share for the first nine months of fiscal 2014.
“Our customers feel the pace of change and disruption in every industry and market, and know their success depends on digitizing their business,” Chambers continued.
“Whether they are the disruptor or the incumbent, they are coming to Cisco as their strategic partner. We believe we are pulling away from our competition using the same formula we’ve always used: integrating our industry-leading products in every category into architectures and solutions that deliver real outcomes. We’ve created this opportunity and it is ours to execute.”
After 20 years at the helm, Chambers will hand off the CEO job to Chuck Robbins effective July 26.
Robbins is a longtime Cisco veteran with a strong sales background. Chambers said that this is the “perfect time” for Robbins to assume the CEO position, noting that Cisco’s board has selected “a strong leader at a time when Cisco is in a very strong position.”
“I am extremely honored and proud to have led Cisco for the last 20 years, and to get us to this positive inflection point,” Chambers said. “We have a tremendous opportunity to extend our lead in the industry, and with Chuck Robbins as the CEO for Cisco’s next chapter, we have exactly the right leader to capture that opportunity. I could not be more confident in our future.”
