Cisco Reports Strong Quarterly Results
SAN JOSE, Calif. (AP) -- Cisco Systems Inc. reported stronger-than-expected results for its fiscal third quarter Tuesday as corporate demand for networking gear improved.
The world's leading maker of routers and switches reported growth in all its major product categories, including its core routing and switching business. Progress also was reported with its advanced technologies such as Internet telephony.
"We are pleased to have achieved record earnings per share this quarter -- marking our eighth consecutive quarter with pro forma net income exceeding $1 billion, and the strongest cash flow from operations in the company's history," said John Chambers, Cisco's chief executive.
For the three months ended May 1, San Jose, Calif.-based Cisco earned $1.2 billion, or 17 cents per share, compared with $987 million, or 14 cents per share, in the same period last year. Sales jumped nearly 22 percent, to $5.6 billion in the third quarter from $4.62 billion last year.
Excluding special items, the company earned $1.36 billion or 19 cents per share, compared with $1.08 billion or 15 cents a share in the same period last year.
On that basis, the results topped Wall Street's expectations. Analysts expected the company to post a profit of 18 cents per share on sales of $5.5 billion, according to a survey by Thomson First Call.
In February, it predicted sales would rise between 1 percent and 3 percent in the third quarter. Instead, they rose 4.1 percent.
Cisco's core business is to build routers, switches and software that direct traffic over the Internet and other networks. It sells mainly to businesses and governments, and its Linksys division sells home networking products for home users.
The company was hit hard by the tech downturn that started in late 2001, but mostly stayed profitable through aggressive cost cutting as well as capturing additional market share even though demand for new gear was shrinking.
The company also has branched into other areas, including Internet telephony, storage and security.
The results were announced after the markets closed. Cisco shares closed at $22.25, up 63 cents, in Tuesday trading on the Nasdaq Stock Market. In the extended session, they lost 52 cents.
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