Cisco's 2Q Profits Fall 37 Pct.
SAN JOSE, Calif. (AP) -- Cisco Systems reported
$606 million in second-quarter earnings on Tuesday, a
33 percent increase from 1997. The report barely
edged Wall Street expectations, and share prices fell in after-hours trading.
Excluding one-time expenses of $349 million related to four acquisitions, the computer
networking giant earned 36 cents per share. Analysts surveyed by First Call had
predicted 35 cents a share.
Revenues from continuing operations rose 40 percent to $2.83 billion, up from $2.02
billion a year ago. Writeoffs from the acquisitions drove Cisco's actual net income for the
three months ended Jan. 23 down 37 percent to $288 million, or 17 cents per share, from
$457 million, or 29 cents per share, in the same period a year ago.
The report was released after the markets had closed. Cisco's stock, which has nearly
tripled since the market began rebounding in early October, fell $2.62 1/2 to $112.37 1/2
in trading on the Nasdaq Stock Market.
The shares continued to fall in after-hours trading, suggesting that investors were
disappointed that Cisco, one of the most popular technology stocks, didn't beat
expectations by a wide margin.
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