Cisco results give hope to ailing economy

The positive figures also suggested that Cisco Systems are in good sequential growth. The network equipment maker on Wednesday reported that fiscal first-quarter profits and revenue that were down from the same quarter a year ago but up from the previous quarter.

Cisco Systems recorded a quarterly profit of $1.8 billion, or 36 cents a share, compared with a profit of $2.2 billion, or 42 cents a share, for the same period a year ago. Revenue for the first fiscal quarter in 2009 was $9 billion, down from $10.3 billion during the same period back in 2008.

Financial analysts had expected the company's earning to reach 31 cents a share on revenue of $8.75 billion but the latest reports showed that Cisco Systems had performed admirably. In the fiscal fourth quarter, Cisco reported profits of $1.1 billion, or 19 cents a share. And it reported revenue of $8.5 billion. Despite the fact that revenues and earnings were lower compared to last year's, Cisco Systems saw an increase in revenue and earnings from the previous quarter.

"Building off what we saw as a clear tipping point in (the fourth quarter), our (first-quarter) results continued to reflect strong sequential growth trends that meet or exceed expectations during normal economic times," Cisco CEO John Chambers said in a statement.

"We view the improving economic outlook, combined with solid execution on our growth strategy, as creating unparalleled opportunity to drive more value into the core of the network," he added.