Network equipment maker
The company posted gross margins of 62.7% in its fiscal third quarter, up from 53.3% in the previous quarter and above guidance of 61% to 62%.
"It is about as solid of a quarter as you can expect," said analyst Zeus Kerravalla at ZK research.
"Seeing gross margin get back up above 62% is certainly good news for investors and should help alleviate some of the concern that their business is being commoditised," he said.
Total US product orders rose 7% from one year ago, with enterprise and commercial orders rising more than 10%. Order strength in northern
Yet in emerging markets, where
Nexus 9000 grew to a user base of 175 customers, up from 20 customers last quarter.
"The traction we are seeing with application-centric solutions gives me confidence that we are leading the disruption of SDN," said
Chambers said the company's book-to-build ratio, the ratio of orders received to units shipped and billed, was "comfortably above one," indicating strong demand.
The company gave forecasts of earnings per share of
Shares rose in afterhours trading to
Non-GAAP earnings of
The company increased its cash dividend in the third quarter to
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