From Bloomberg:
Top Financial News
Tue, 10 Aug 1999, 5:05pm EDT
Cisco's 4th-Qtr Profit Rises on Sales to Phone Companies, Small Businesses
By Scott Lanman
Cisco's 4th-Qtr Profit Rises on Sales to Phone Companies
San Jose, California, Aug. 10 (Bloomberg) -- Cisco Systems
Inc., the No. 1 maker of Internet equipment, said fiscal fourth-
quarter profit rose, driven by sales to phone companies and small
and mid-size businesses.
Net income rose to $635 million, or 18 cents a share. That
compares with a pro forma $525 million, or 16 cents, in the year-
earlier quarter. Revenue in the period ended July 31 rose 48
percent to $3.55 billion from $2.4 billion.
Cisco is benefiting as telecommunications companies update
their networks to handle Internet and data traffic. Such sales
contribute about a third of Cisco's revenue. The company also
sold more equipment to smaller businesses, one of the fastest
growing networking markets.
''They're pretty much firing on all cylinders,'' said
Michael Cristinziano, an analyst at Gerard Klauer Mattison & Co.
in New York, who rates Cisco shares ''buy.''
Cisco shares fell 1 1/16 to 58 3/4 before the report.
They've risen about 27 percent this year.
Net income includes the writeoff of purchased in-process
research and development and acquisition-related costs. Without
those costs, profit in the recent quarter was $727 million, or 21
cents a share.
Analysts polled by First Call Corp. expected profit of 20
cents. Some unpublished estimates were as high as 21 cents for
the San Jose, California-based company.
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