Cisco Starts 2010 With Strong Numbers and Job Creation
By John Vinson
Late last week provided a glimpse of where many network experts hope Cisco will be throughout 2010 -in the black. While most companies where floundering at a sharp nose dive in the stock market, Cisco stayed strong and provided a bright forecast for the rest of 2010. The most important bit of news from all of this is Cisco will be looking to bolster the company lineup by hiring up to 3,000 people this year.
The boost in trading came from a late Wednesday announcement, that second quarter earnings increased 23%, goings from $1.5 billion to $1.85 billion. While the market looked good last week for Cisco, Richard Gardner a Citigroup analyst still doesn't place it among the top in the tech sector, "Those returns don't place Cisco among our top picks in IT Hardware." Gardner places Hewlett-Packard and Juniper Networks ahead of Cisco, though the network company still has a "buy" rating.
John Chambers, Chief Exec of Cisco is quite pleased with the numbers, "Our outstanding Q2 results exceeded our expectations, and we believe they provide a clear indication that we are entering the second phase of the economic recovery." He continues, "During the quarter we saw dramatic across-the-board acceleration and sequential improvement in our business in almost all areas."
During the economic plummet of 2009, Cisco had to lay off around 2,000 workers but is looking to make up for it with a hire around 3,000 sometime in 2010. With all the good news, Chambers still wants to remain cautious considering the flux the market is still in.
This cautious nature wasn't seen during the downturn last year as Cisco made key acquisitions in light of the dark economic times. These provisions now look poised to pay dividends during the turn around. The ripple effect of Cisco's recent success will be felt for component suppliers across the industry.
For many looking for network jobs out there, this can only be seen as good news. As a leading provider of network solutions, the 3,000 job addition will go along way in helping to recover the industry as a whole. Along with Chambers, it's important to remain cautious in light of good news. Just like the tide of the ocean, when things look good it's easy to get swept up and caught off guard.
About the Author:
John is a staff writer for WebProNews.
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