By George Williams
Cisco Systems did not see their backward moving trends change in the second quarter as well. The gross margins of the network equipment manufacturers fell by almost 2% and profits fell by 0.4 billion dollars.
The last couple of days have seen a number of companies come out with quarterly reports of the year 2010 failing to deliver their desired results and it turns out that the accounts for Cisco seems to be not much different from the rest.
The statement made by John Chambers, CEO of the Cisco Systems, as on this past Wednesday did not seem to turn their investors into optimistic creatures. However, this time it did not come as a surprise as the same negative picture has preceded the investors’ meetings on the previous two quarters as well.
The company may not be doing as well as it would have liked to and so the immediate likely response may be to cut down on the expenditure that they make on public amenities.
The fact is that the company operates in a field of manufacturing equipment for networking and the area is fast becoming more populated which makes the market significantly more competitive.
This is precisely the reason why the margins for the company seem to be filling a gap quarter after quarter.
When compared to the quarter that preceded one year earlier ending on the 29th of January, the revenue of the company reflected a six per cent rise but the net profits fell from 1.9 to a much lower 1.5 billion United States dollars.
On the whole the gross margin for the company came down from being at 64.3 per cent to a humbler 62.3 per cent over the course of the second quarter.
