"Our net income in the quarter grew to $2.2 billion on a GAAP basis, representing solid growth of 63 percent year over year," said Frank Calderoni, chief financial officer for Cisco. "This stability in our earnings, coupled with strong margins, is contributing to our continued strategic ability to generate cash in the business." Last quarter CEO John Chambers said Cisco was entering the second phase of the economic recovery. This quarter he said "we emerge from this downturn gaining market share, a larger share of the total wallet spend of our customers, dramatically improved customer relations as a trusted technology and business partner, and having next-generation products in almost every product category. It is clear that our game plan for how to handle economic downturns is hitting on all cylinders." The key business highlights for the third quarter included launching an initiative with VMware and the completion of the TANDBERG acquisition.