Cisco profits rise but shares fall
Cisco Systems last night reported second quarter profits up nearly 13%, although sales missed expectations, as the company continued to see strength in its traditional router business and emerging technologies such as Internet telephones.
For the three months ended January 29, Cisco earned $1.4bn (£750m) compared with $724m, in the same period last year.
Excluding special items, Cisco earned $1.48bn compared with a profit of $1.32bn last time. Sales jumped 12% to $6.06bn, from $5.4bn last year. The earnings beat Wall Street expectations, while revenue missed.
Since the high-tech bubble burst four years ago, Cisco has been branching out into areas beyond its core router and switching business.
The strategy is paying off, said John Chambers, Cisco's chief executive.
The results were announced after markets closed. Earlier, Cisco shares were up 8 cents, to $18.24, on Nasdaq. They lost 49 cents after-hours.
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