CBM Marketwatch news: Sales jump 53%
Cisco Systems profit up 49%
By Cecily Fraser, CBS MarketWatch
Last Update: 4:41 PM ET Feb 8, 2000
Silicon Stocks
Hardware Report
SAN JOSE, Calif. (CBS.MW) -- Cisco Systems said Tuesday that
second-quarter profit rose 49 percent, topping analyst expectations as
sales of the company's network equipment soared. The company also
declared a two-for-one stock split.
After the market closed, Cisco reported sales of
$4.35 billion, up 53 percent from $2.85 billion in the
year-ago period.
Pro forma net income was $906 million, or 25 cents
a share, excluding items. That's a penny ahead of the
24-cent consensus estimate of analysts surveyed by
First Call and an improvement from last year's pro
forma net income of $609 million, or 17 cents.
Cisco shares closed up 5/8 at 125 13/16, but were
changing hands at about 130 in after-hours trading,
following the announcement. The stock is up more
than 55 percent from mid-November when the
company reported its fiscal first quarter results.
Cisco's stock split will be its ninth since going public
in 1990.
Cisco (CSCO: news, msgs) is the biggest
manufacturer of data networking products such as
routers and switches, which tell information where to go. Its sales and
profits have been growing steadily, lifted by demand from
telecommunications firms looking to step up their Internet capabilities.
"The momentum of the Internet
revolution continues to
accelerate across both business
and government sectors on a
worldwide basis," said CEO
John Chambers in a statement.
Optimism surrounding the
company's second-quarter
profits, propelled Cisco's stock
to new highs in the past three
consecutive sessions. Join the
Cisco Systems discussion group.
cbs.marketwatch.com |
