Cisco posts 27% profit jump in Q1

09 Nov 2006
00:00

(Associated Press via NewsEdge) Cisco Systems, the world's largest networking equipment maker, said Wednesday its first-quarter earnings jumped 27% over last year on higher sales of the gear that connects computers to the Internet.

Net income for the quarter ended October 28 was $1.61 billion, compared with $1.26 billion in the same period last year.

Quarterly sales for the San Jose-based company were $8.18 billion, compared with $6.55 billion last year.

Excluding one-time charges, the company would have earned $1.9 billion.

The company was expected to earn, on average, $0.29 per share on $7.9 billion in revenue, according to analysts surveyed by Thomson Financial.

'This strong momentum demonstrates that customers increasingly share our vision of the network as the platform for all forms of communication and IT,' John Chambers, Cisco's CEO, said.

Chambers said sales increased across several categories and the company expects year-over-year revenue growth of 24% to 25% in the second quarter.

Scientific-Atlanta, which Cisco acquired for $6.9 billion in February, added $584 million in sales during the quarter. Scientific-Atlanta, the world's second-largest seller of cable television boxes after Motorola, also specializes in broadband services such as digital content distribution systems.

© 2006 The Associated Press

© 2006 Dialog, a Thomson business. All rights reserved

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