Cisco Systems, world's leading networking solutions provider, today reported an almost flat net income at $2.2 billion for the first quarter ended October compared to the same period a year-ago.
Net sales increased over eight per cent to $10.3 billion for the first quarter as against $9.5 billion for the corresponding period last fiscal, it said in a statement.
Even as the company has managed to deliver strong revenues in Q1FY09, it has decided to freeze hiring and take steps to address the ongoing financial crisis.
"Cisco delivered solid revenue and earnings growth in what is clearly a very challenging global economy. Our strategy and focus for managing the business through this market transition is clear - we will manage and prioritise our resources, invest in innovation and build even stronger relationships with our customers to help enable their success," Cisco Systems Chairman and CEO John Chambers said.
Chambers told analysts that the company's plans for addressing the current global financial downturn would include a pause in hiring as well as other cost cutting measures.
For the second quarter, he said, their "goal is to realign another $500 million of resources, while at the same time reducing expenses for FY09 by over $1 billion from our original budget".
Cash and cash equivalents and investments were $26.8 billion at the end of the first quarter of FY09, compared to $26.2 billion in Q1FY08. Cisco's total service revenue was $1.7 billion, up 10 per cent year-over-year with solid growth in emerging markets, the statement added.
