It’s the same old story, same old song and dance, my friends. Yet another technology supplier’s earnings are suffering the impact of a down economy.
Cisco Systems Inc. (CSCO) on Wednesday reported a 27 percent drop in net income to $1.5 billion for the company’s second quarter of 2009. That compares to profit of $2.1 billion a year earlier.
Sales, tracked through Jan. 24, also fell by 8 percent to $9.09 billion. With no end in sight to the recession, many end users are waiting to upgrade their networks, a reality that’s hurting next-gen suppliers such as Cisco. And given Cisco’s status as the largest networking vendor, it is considered a leading indicator for its peers’ performance.
