Cisco Systems CEO John Chambers says the economic recovery appears to be gaining speed and Cisco will add as many as 3,000 jobs over the next few quarters as it looks to continue its expansion into new markets. Cisco reports a solid fiscal second quarter that included a 23.2 percent increase in income over the same period in 2009 and an 8 percent jump in sales.
Cisco Systems will add 2,000 to 3,000 jobs over the next few quarters as it
continues to push into new markets and as officials see the economic recovery
gaining steam, according to CEO John
Chambers' comments came Feb. 3 during the conference call with analysts and
journalists announcing the company's solid fiscal 2010 second-quarter financial
He said Cisco expects increased expenses as it looks to move deeper into
more than 30 new "adjacencies" and take advantage of the growth in
Cisco had 63,756 employees in the first fiscal quarter of 2010, though added
some more in the second quarter through the acquisitions of Starent
Throughout the call, Chambers was both optimistic and cautious. He called
the second quarter a "tipping point" and an indication that the economic
recovery had entered its second phase.
At the same time, he cautioned that there are no guarantees as the United
States and other countries work to crawl out
from the wreckage of the global recession.
"While we believe the recovery is growing, no one is sure how long it
will last, how strong it will be or the extent of job growth," Chambers
Still, Cisco is moving forward on the assumption that the recovery will
continue, and will adapt if it slows, he said.
For the quarter, Cisco reported net sales of $9.8 billion-an 8 percent increase
over the same period in 2009-and net income of $1.9 billion, a 23.2 percent
The company's projections for the current quarter are similarly optimistic.
Chambers said the company expects revenues to grow between 23 and 26 percent in
the second quarter.
Answering a question, Chambers said his optimism about the economic recovery
is based not only on Cisco's own businesses, but also on what world economic
leaders have told him about what they're seeing in their countries.
Regarding Cisco, he said the company is seeing growth in all its businesses
and across all its regions.
For example, revenue for the ASR 1000
core router was up 150 percent over the same period last year, and orders for
the newer ASR 9000 produced twice the
revenue, he said. In addition, sales of the Flip video camera, acquired through
the 2009 purchase of Pure Digital, was $130 million, up from $50 million during
the same period last year.
Chambers also said interest was growing in Cisco's
(Unified Computing System), with more than 400 customers putting in
What Cisco is able to do now is show customers how the various new markets
and new products are beginning to fit together, he said. Not only is Cisco
keeping its market share in such traditional businesses as enterprise
networking, but also in other spaces, such as the edge of the network, video,
cloud computing, Internet security and wireless.
"You are seeing an architectural play," he said.