Networking giant Cisco recorded solid sales for its fiscal 2007 second quarter that ended Jan. 27, with a boost from the Scientific-Atlanta cable equipment business that it acquired for $6.9 billion in the third quarter of fiscal 2006.
Cisco reported second quarter net sales of $8.4 billion, a 27.3% jump over the same quarter last year, and net income of $1.9 billion, with Scientific-Atlanta contributing net sales of $639 million during the quarter. Earnings per share of $0.31 reflect a 40.9% jump compared to Q2 2006.
Cisco highlighted a sale of Scientific-Atlanta MPEG-4 compression gear to Turner Broadcasting System Inc. to support new IPTV platforms, and Cisco Chairman/CEO John Chambers noted that video in general was driving Cisco's overall performance across its diverse business segments.
"It is this unique ability to balance between strategy and innovation that has positioned Cisco to take advantage of key emerging business and IT trends such as the rise of video on the network," said Chambers in a statement. "As the network becomes the platform, we are seeing more and more signs that all forms of IT and communication are moving into the network and increasing the total available market to Cisco."