[November 10, 2009] Cisco Q1 pulled down by product revenue dip Tweet Nov 10, 2009 (Datamonitor via COMTEX) -- Network equipment provider Cisco Systems has reported an 18% decline in net income to $1.8 billion for the first quarter 2010, compared to $2.2 billion in the same quarter last year. Revenue was down 13% at $9 billion. Operating income fell 14.4% to $2.12 billion, while diluted EPS fell 19% to $0.30. The company had cash flow from operations of $1.5 billion and repurchased 76 million shares of common stock for $1.8 billion. The company said product revenue fell 17% to $7.2 billion, while service revenue grew 7.4% to $1.8 billion. The company announced a partnership with enterprise cloud computing company Salesforce.com to offer a combined solution to deliver a complete contact center in the cloud. It also formed a partnership with Schneider Electric's subsidiary Pelco to jointly develop new high-definition internet protocol video security cameras. During the quarter, the company agreed to acquire Norway-based video communications provider Tandberg for $3 billion to expand its collaboration portfolio, and IP-based mobile infrastructure solutions provider Starent Networks for $2.9 billion to expand its mobile internet offerings for service providers. John Chambers, chairman and chief executive at Cisco, said: "Our Q1 results reflect strong sequential growth trends that meet or exceed expectations during normal economic times. Our ability to launch four proposed acquisitions, the ecosystem-shifting coalition with EMC/VMware, and five new products and industry solutions in the past few months alone underscores this momentum. Our build - buy - partner innovation engine is running on all cylinders, while operational machine is pulling costs out of the business." http://www.datamonitor.com Republication or redistribution, including by framing or similar means, is expressly prohibited without prior written consent. Datamonitor shall not be liable for errors or delays in the content, or for any actions taken in reliance thereon [ Back To TMCnet.com's Homepage ]