Cisco Systems, the largest maker of computer-networking gear, reported fiscal second-quarter results Tuesday that topped analyst forecasts by a penny while sales surged 40 percent.
The company said profits before a charge for the quarter ended 23 January rose 33 percent to US$606 million, or 36 cents a share, from a profit of $457.3 million, or 30 cents a share, adjusted for a 3-for-2 stock split in August 1998.
Revenue rose 40 percent to $2.83 billion from $2.02 billion. The San Jose, California-based company was expected to earn 35 cents a share, according to First Call, which tracks such figures.
Net income for the second quarter, including charges related to research and development for acquisitions, was $288 million or $0.17 per share.
Cisco (CSCO) said it continued to gain market share in local-area-network switches and in selling networking gear to small- and medium-sized businesses.
"The Internet revolution will determine which companies survive and which get left behind," said John Chambers, president and chief executive of Cisco, in a statement. "Increasingly, the Internet is recognized as the key driver in our global economy."
About 80 percent of the traffic on the Internet travels through Cisco switches, routers, and hubs.
Cisco fell $2.61 to $112.39 Tuesday on the Nasdaq amid a broad drop in technology stocks. The company reported its results after the close of regular trading on Wall Street.
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