San Francisco – The benefit of Cisco jumped 20% in its third quarter, another sign that the restructuring undertaken recently by the largest manufacturer of computer networking equipment in the world is beginning to yield.
For the quarter, Cisco increased its biggest business, “switches,” that move data around the Internet and corporate networks, 5% from a year earlier to $3.6 billion. But sales of “routers” were flat at $2.1 billion. The two products account for about half of Cisco’s revenue.
Sales in some newer product categories, such as server systems, also grew. But Cisco’s collaboration business was flat, partly because businesses and governments didn’t buy as many video-conferencing units.
Cisco has earned a profit of U.S. $ 2.2 billion, or 40 cents per share, for the quarter February to April. In comparison, it had posted a profit of 1.8 billion, or 33 cents per share, for the same period last year.