Cisco Systems, Inc. (NASDAQ:CSCO) shares are up over 12% because the company reported that their quarterly results and financial targets are better than what Wall Street was expecting. Today Cisco even hit a multiyear high of $24.24 based on the results. The last time that Cisco’s shares traded above $23 was in November 2010.
Cisco said that they are seeing good signs in the U.S. economy as they acknowledged global economic challenges. Cisco reported that they hit $12.22 billion in revenues for the quarter while analysts were expecting $12.17 billion. The company’s EPS hit 51 cents versus Wall Street expectations of 49 cents.
Cisco also reported that they had 9 straight quarters of record revenues and 6 quarters where earnings grew faster than revenues according to Cisco CEO John Chambers. Chambers said that Cisco is no longer just a network company, but now they are an “IT company.” Cisco now sells software, security, servers, and data center technologies.
?Cisco is executing at a very high level in a slow, but steady economic environment. We are especially pleased with our ninth consecutive record revenue quarter. We are starting to see some good signs in the U.S. and other parts of the world which are encouraging,? stated Chambers.
Cisco’s server Unified Computing System (UCS) business in 2009. Cisco’s UCS is set to become a $5.5 billion business growing 35% year-over-year according to Chambers. This is about 10% of Cisco’s overall revenues. The company’s UCS division now has around 10,000 customers.