Excluding one-time items, Cisco (CSCO) said it earned 36 cents a share, down from 42 cents a share in the same period last year. Still, that was better than the consensus estimate. Analysts polled by Reuters had expected the company to deliver a profit of 31 cents a share on sales of $8.745 billion.

“Building off what we saw as a clear tipping point in Q4, our Q1 results continued to reflect strong sequential growth trends that meet or exceed expectations during normal economic times,” CEO John Chambers said in a statement.

“We view the improving economic outlook, combined with solid execution on our growth strategy, as creating unparalleled opportunity to drive more value into the core of the network,” Chambers continued. “Simply said, we believe that key market transitions across collaboration, virtualization and video will drive productivity and growth in network loads for the next decade, and are evolving even faster than expected.”

At $24.20, shares in the company are trading up nearly four percent on the news.

With V-Block, clients can build “private clouds” from which to draw computing resources. It’s an ambitious effort designed to capture a bigger piece of the IT infrastructure market by offering large unified systems designed to handle most of a business’s computing needs. As Cisco CEO John Chambers noted earlier today, the goal here is to more effectively target the market for cloud infrastructure and services, a market that could be worth as much as $350 billion.

It’s also a market loaded with with fierce competitors, IBM (IBM) and Hewlett-Packard (HPQ) among them. Not that this worries Chambers much. “Will this change the industry?” he asked during a conference call today. “Time will tell. I believe that it will be the partnership that people will look back on and say it changed the data center and clouds forever.”

Earlier this year, Cisco (CSCO) acquired Pure Digital, developer of the Flip video camera, for $590 million. Two weeks ago, the company spent $3 billion on videoconferencing system maker Tandberg. And now it’s purchasing wireless infrastructure outfit Starent Networks (STAR) for $2.9 billion, or $35 a share. That’s a 21 percent premium over Starent’s closing price on Monday of $29.03, but it’s likely money well spent for Cisco.

Starent makes hardware and software to support wireless multimedia services, an obvious sweet spot in the data services market right now. Indeed, Cisco expects global mobile data traffic to more than double every year through 2013. Which makes Starent a pretty good growth bet, from on acquisition standpoint.

An appalling drop. But one that investors welcomed, because as lousy as its performance might seem, Cisco’s earnings still managed to beat the Street. Analysts who follow the company had expected it to report earnings of 29 cents a share on revenue of $8.52 billion.

Is this what they mean by “green shoots”? Sigh.

“Cisco delivered very solid quarterly and annual results in a challenging economic environment, as we continued our focus on disciplined execution and our customers’ success,” Cisco CEO John Chambers said in a statement. “We are confident in our strategic position in both existing and thirty adjacent markets. We saw a number of positive signs this quarter in the economy and in our business, especially comparing our sequential quarter-over-quarter order trends. If we continue to see these positive order trends for the next one to two quarters, we believe there is a good chance we will look back and see that the tipping point occurred in our business in Q4.”

Cisco (CSCO) shares are up two percent at $22.60 on the news.

For Hooper, who was already waist-deep in corporate strategy at Cisco as senior vice president corporate development and head of its consumer division, this is quite a promotion, one that clearly suggests he’s being groomed for the CEO spot. And with former CEO candidates Charlie Giancarlo and Mike Volpi out of the picture, what’s to stop him from ascending to it? As Barclays Capital noted this morning, “The appointment cements our view that Mr. Hooper is well-regarded within Cisco and may continue to progress in the upper echelons of Cisco’s management team.”

While you might think of the Flip as a consumer device it is just as useful in our business line. The number of applications enabled by this network web 2.0 device in the business world is exploding.

Again using myself as an example I carry the same two devices in my business life and my personal life. A PDA and my Flip. Another key take away is to understand in my opinion the argument about consumer devices and business devices as well as the two architectures completely blurring is over. The real question is how do the CIO’s in the enterprise business facilitate this change and that is from a number [of] recent meetings with some of the top CIO’s in the world. They get it. They understand the change and it is how they facilitate it rather than slow it down.

An interesting point. That said, I imagine it will take a while for enterprise to overcome its security concerns over such uses. And for their employees to feel comfortable conducting personal business on company-issued handsets governed by those annoying corporate communications policies….

For its third quarter, the company posted a profit Wednesday that fell 24 percent from a year earlier but still beat expectations. Sales slipped 17 percent. The specifics: Revenue topped out at $8.16 billion, down from $9.79 billion for the same period last year but better than the $8.07 billion analysts had expected. Sales were $8.2 billion, topping analysts’ forecasts of $8.1 billion. Excluding one-time charges for acquisition costs, Cisco (CSCO) earned 30 cents per share, a nickel more than the Street had been looking for.

So, overall, a good report that exceeded expectations with numbers that, by any standard, are pretty damn ugly. “Cisco delivered solid financial performance despite a challenging global economy and period of evolving market dynamics,” said CEO John Chambers. “These results demonstrate our ability to drive operational excellence and manage profitability across varying economic cycles.”

One way of putting it, I suppose. Certainly investors are eating it up. Cisco shares rose on the news.

Looks like that 27 percent year-over-year drop in net income Cisco reported earlier this month had dire consequences for its workforce. The company sacked several hundred employees this week as part of what it describes variously as a “limited restructuring” and “targeted realignment of resources.” Cisco (CSCO) defines layoffs as a minimum 10 percent reduction in workforce; hence, the silly euphemisms here.

It’s not yet known how many positions were “restructured/realigned,” but the company is said to have eliminated 250 at its San Jose, Calif., headquarters alone. More “realignments” are likely to follow until the company reaches the 1,500- and 2,000-employee figure cited by Cisco CEO John Chambers in a Feb. 4 call with Wall Street analysts.

“With the speed we are now moving on some of these fronts we will continue this normal process which in the near-term could result in a reduction of 1,500 to 2,000 jobs,” Chambers said at that time. “This is something we will continue to do in good and challenging times. I thought it was important to provide this level of detail especially to our employee family during these uncertain times. Many of you have asked us if we need to do a broad company lay off in order to manage our expenses. My own view is if you are going to do a lay off and we try everything possible to avoid them, it needs to be a critical mass to justify the loss of business momentum, impact on employees and disruption in key projects. Being very transparent, our definition of a company-wide lay off if we had to do one would most likely be at least 10% of our workforce.”

Cisco currently employs about 64,000 people. So even if it sacks 2,000 of them, it still doesn’t count as a layoff under its definition. That said, a layoff by any other name is still a layoff, no?

[Image credit: Someecards]

Cisco’s networking products are crucial components of corporate infrastructure, but apparently not so crucial that its customers can’t forgo their equipment orders in a recession. Certainly, Cisco’s (CSCO) earnings–which include sales through Jan. 24–suggest that the global downturn continues to hamstring IT spending. How long that will last is anyone’s guess, although on a conference call with analysts CEO John Chambers said we may see things begin to turn around sooner than later. “The majority of our customers are guessing [the downturn will last until] 2010, while a smaller group sees the upturn toward the end of 2009,” Chambers said. “Given the coordinated activities of global central banks and the extremely large stimulus packages that are being implemented, I tend to be a little bit more optimistic than most of my customers. Time will tell if that optimism is appropriate.”

Not Seagate (STX).

Not Logitech (LOGI).

Not Cisco (CSCO).

Not Philips.

Not Yahoo. Obviously.

And not Sanyo, either.

All six companies have abandoned plans to exhibit on the Consumer Electronics Show floor. Like Belkin, they are all opting for the more intimate and inexpensive floorspace of a Vegas hotel room. Said Seagate spokesperson Woody Monroy, “We haven’t pulled out of CES…we’re just taking a different approach.” Cisco offered this statement on the matter:

On our Q1 FY ‘09 earnings call on November 5 we announced that we will be reducing expenses for FY09 by over $1B from our annualized expense run rate, given the challenging macroeconomic environment. We are targeting reductions in travel and discretionary-related expenses, including offsite meetings, outside services, equipment, events, trade shows, prototypes, marketing and other activities. Given this focus on reducing costs, we are modifying our participation in the Consumer Electronics Show in Las Vegas in January 2009.

We have several speakers presenting in the various CES sessions, and Cisco chairman and CEO John Chambers will be delivering a keynote at the conference, as well. We are focusing our CES presence on our direct customers, press and analysts in order to create a more intimate event and reduce expenses. We look forward to an exciting CES 2009 with multiple product announcements that will reinforce Cisco’s consumer strategy. We remain committed to the consumer market, and we believe our cost control focus at this time is appropriate. In support of our CES presence, we will be utilizing Cisco’s world-class Web 2.0 collaboration technologies, such as TelePresence and WebEx, to maintain essential customer and partner communication. Cisco will have compelling demonstration areas and meeting rooms in the Venetian hotel in Las Vegas as we have for the past several years.”

The new economy is the Internet Economy. The Internet Economy is reshaping the fortunes of business, countries and people, leveling the playing field for everyone, and driving the most significant economic shift since the Industrial Revolution.”

– Cisco CEO John Chambers, Sept. 24, 1998

When he appeared at our D5 conference in May 2007, Sen. John McCain said that, given the chance, he’d hire Cisco CEO John Chambers for his cabinet. Now, in the run-up to the November presidential election, it looks like Chambers has some competition for that spot. In an interview with Reuters today, McCain said that Chambers–who’s contributed quite a bit to the McCain campaign–is still on his short list of potential Treasury secretaries, but the Cisco (CSCO) CEO has some company. “I think it would be someone that Americans would recognize that would inspire trust and confidence,” McCain said. “There’s people like John Chambers, there’s people like [former eBay (EBAY) CEO] Meg Whitman, there’s people like Warren Buffett.”

Apparently, current Secretary Henry Paulson doesn’t quite cut it anymore. Anyway … it’s curious that McCain would include Buffett among his choices for Treasury secretary since his appointment would almost certainly outrage tax-cutting fiscal conservatives to near-aneurysm. Indeed, it already has. Said Grover Norquist, president of Americans for Tax Reform, “Warren Buffett is a goddamned Democrat and he doesn’t understand that a 28 percent capital gains tax would be a bad thing. He might be a good bridge partner, but he’s awful on policy.”

Incidentally, Barack Obama’s list of potential Treasury secretaries includes no Silicon Valley CEOs, current or otherwise. According to people close to his campaign, it includes New York Federal Reserve Bank President Tim Geithner, former Treasury Secretary Larry Summers and former deputy Treasury secretary Roger Altman.