Cisco Q1 income up as US businesses buying again
NEW YORK (AP) - Cisco Systems, the world's largest maker of computer networking gear, said on Tuesday that companies in the United States (US) are starting to spend again, helping it find more solid footing after some shaky months early this year.
Cisco said its earnings rose 18 per cent in the latest quarter, propelled by a renewed willingness by large U.S. businesses to invest in big-ticket networking gear, even as the federal government continued to hold back. Orders from large business customers in the U.S. rose 9 per cent from a year ago.
That helped make up for continued weakness in Europe, where economic turmoil is still causing a big drop-off in orders.
"The U.S. has to lead the total globe out of this slowdown. It's not going to come from Europe. While we were all hopeful about emerging countries, they just aren't going to be strong enough," CEO John Chambers said.