Network and tech security firm Cisco saw stocks rally 5.1% in the after-market session yesterday as it announced a greater than expected profit and added $15 billion to its share buyback program.
Profits were largely boosted by increased demand for network routers and security products such as firewalls and network intrusion software. Cisco’s rally stands in stark contrast to the recent woes of some other tech firms like Linkedin and Twitter.
Outlining the forward business plan, Cisco joined the increasing number of tech firms set to focus on cloud-based data storage and analytics moving forward.
Sales increased in the network security and routers arms of the firm but fell in the switches arm. Despite this, net income rose to $3.1 billion, equalling 62 cents per share, from $2.4 billion, equalling 46 cents per share, last year.
So, a great year for Cisco and yet more evidence that data storage and analytics is the future for big tech companies. While Cisco may not be the biggest of the bunch, this year, at least, it is one of the best performing