Cisco profit surges 28% - sales rise 25%
[author:zyk06 Public time:Nov 9, 2006] |
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Cisco Systems Inc. reported late Wednesday a fiscal first-quarter profit that climbed 28%, as demand for Cisco's networking gear surged among telecommunication providers.
The results topped the expectations of Wall Street analysts and sent Cisco's shares up as much as 8% in after-hours trading.
San Jose, Calif.-based Cisco said net income for the fiscal first quarter ended in October rose to $1.61 billion, or 26 cents a share, from $1.26 billion, or 20 cents, a year earlier.
The company said it earned 31 cents a share excluding option expenses and other costs, up from 25 cents a year ago and more than the 29 cents analysts expected.
Sales rose 25% to $8.18 billion, also more than expected. Revenue was boosted by Cisco's acquisition earlier this year of cable-equipment maker Scientific-Atlanta, which contributed $584 million in quarterly sales. Excluding Scientific-Atlanta, sales rose 16%.
The No. 1 maker of Internet equipment, Cisco is selling more to phone companies and cable providers that are racing to upgrade their networks to offer high-speed video and other services.
"Cisco is like an arms supplier to both sides of a war," said Frank Husic, chief investment officer of Husic Capital Management in San Francisco, which owns Cisco shares.
Cisco's corporate customers also are upgrading their data networks to boost security and reduce costs by using the Internet to make long distance calls.
T
he company received 45% of its quarterly revenue from large corporate customers, while telecom providers contributed nearly 25% of sales and small-to-mid-sized businesses kicked in roughly the same share, Cisco Chief Executive John Chambers said on a conference call.
Orders from Internet service providers rose 23% from a year ago, Chambers said, while revenue from that market segment rose almost as fast. Orders for Cisco's most powerful router rose more than fivefold.
Author: John Shinal
Source: http://www.marketwatch.com/
Printed From:http://www.free-press-release.com/news/200611/1163074412.html
Source:Free Press Release
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