Cisco Systems Inc. (Nasdaq: CSCO), which was arguably the first tech company to predict the economic collapse of late 2008, is ready to say everything's better.

All indications are that "the the recovery, from a capital expenses standpoint, is very strong" and is moving into a second phase of growth, Chambers said on this afternoon's earnings call.

Analysts had expected a sunny earnings report from Cisco, and the company obliged today. For its second quarter, which ended Jan. 27, Cisco reported earnings per share of 40 cents on revenues of $9.8 billion, topping analyst expectations of 35 cents and $9.4 billion, as measured by Thomson.

Cisco's revenues for its second quarter, which ended Jan. 27, were $9.8 billion, topping the $9.4 billion anticipated by analysts, according to Thomson.

Moreover, Cisco says revenues in its third quarter, which ends in April, will be between $10 billion and $10.2 billion, outpacing the $9.8 billion prediction from analysts.

This means Cisco is going to start spending again, Chambers said: "You will now start to see us grow our expenses at a faster rate." Cisco expects to hire 2,000 to 3,000 more people during the "next several quarters," targeting the hires for particularly promising areas of business.

At the recent CES and other events, Chambers has been saying business is climbing back upward after a disastrous 2009. At the same time, he's been pointing out that Cisco was early in predicting a weakened economy, back in February 2008.

Source:Light Reading