Tech Spending Bounces Back as Profits Rise [Voices]

By Ben Worthen and Don Clark, Reporters, The Wall Street Journal

Business spending on technology goods and services is returning as the economy mends, pumping new life into suppliers such as Cisco Systems Inc. (CSCO), though it has been slower to reach other sectors.

The big maker of networking gear Wednesday posted a 23 percent jump in quarterly profit and eight percent gain in revenue, its first such increases in a year.

The economy has entered a new “phase of the recovery,” said John Chambers, Cisco’s chief executive, in a call with analysts, adding that he planned to hire up to 3,000 workers in coming quarters. “This is one of the most robust positive turnarounds I’ve seen in my career,” he added.

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