When Cisco Systems (CSCO) delivered relatively strong Q2 2012 financial results earlier today, the numbers revealed the networking giant has successfully cut costs while restoring top-line revenue and net income growth. Listen closely and you may even hear CEO John Chambers suggest Cisco is taking share from rival Juniper Networks (JNPR) in the service provider market. Here's the chatter.
First, the basic facts. For its Q2 ended January 28, Cisco reported:
- Net sales of $11.5 billion, up 11 percent
- Net income of $2.2 billion, up 48 percent
"Our performance in the service provider market this quarter is proof of the power of our integrated architectural approach, and the benefits of our intelligent network in helping our customers to transform their business and capitalize on new revenue opportunities.He added: "Our Q2 revenue growth and guidance for Q3 appears to be proof points in how we've been breaking away from many of our competitors."
This architectural approach makes us a strategic partner to our top service provider customers globally, and it's what differentiates us from our competitors. So while others talk about the decline in service provider CapEx, we are pleased with our performance and the alignment of our portfolio with our service provider customer's spending priorities."
Chambers' words are an indirect attack on Juniper, which issued a financial warning in January 2012 -- though Juniper did host a successful global partner conference that month as well.