American networking hardware producer, Cisco, got a somewhat pleasant surprise. It was reported that the company made more money than it was expected. Even though their overall income is going down for the last few years, these recent profits were made possible due to the business in information security field.
In the first financial quarter this year, which ended on the 28th of October, departments of Cisco that are responsible for the development of firewalls, network vulnerability detection systems in corporate IT solutions, and other information security products earned $585 mln, which is an 8% increase in comparison with last year numbers.
According to Reuters, many IT companies, including Cisco, redirect their attention to new markets that show rapid grows, such as cyber-security, Internet of Things, and cloud computing. The demand for networking equipment decreases: Cisco’s corresponding department showed 4% decrease in profits.
If we look at the entire picture, we notice that overall profits increased very insignificantly – from $2,32 bln to $2,39 bln. At the same time, sales experienced 1,7% decrease. Nevertheless, expected sales, according to Thomson Reuters I/B/E/S analytics, were $12,11 bln, while the actual number was $12,14 bln.
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