As technology becomes more central to businesses’ strategies, companies invest in new products even during market volatility, Cisco’s CEO told CNBC on Thursday.
Cisco Systems stock was up more than 9 percent midday Thursday after the company reported better-than-expected quarterly profit late Wednesday, helped by higher demand for its routers and security products. It also added $15 billion to its share buyback program.
Cisco posted fiscal second-quarter earnings of 57 cents per share on $11.8 billion in revenue. Analysts had expected the networking equipment giant to report earnings per share of 54 cents a share on $11.75 billion in revenue, according to a consensus estimate from Thomson Reuters.
Though stock markets have been skittish on China’s economy, Cisco’s chief executive, Chuck Robbins, told “Squawk on the Street” on Thursday that China and India were two bright spots for the company.
“Recently, we’ve experienced one of the most volatile times in the global markets. This volatility led to a slowdown in spending impacting our business, especially during the last few weeks of January as we closed our quarter. Despite this slowdown, we executed very well,” said Robbins on the company’s earnings call Wednesday.
Net income rose to $3.1 billion, or 62 cents per share, from $2.4 billion, or 46 cents per share, a year earlier.