Cisco profits top forecasts

[notiCIas]

Cisco profits top forecasts

No. 1 maker of Internet gear reports quarterly profits that beat estimates; stock edges higher.

May 10, 2005: 5:42 PM EDT
 
CHICAGO (Reuters) - Cisco Systems Inc. Tuesday said quarterly earnings rose, as faster-growing technologies such as network security helped push sales higher.

Cisco, the largest maker of gear for directing traffic over the Internet, said profit in its fiscal third quarter rose to $1.4 billion, or 21 cents a share, compared with $1.2 billion, or 17 cents a share, in the year-ago period.

Earnings before items were 23 cents a share, Cisco said. Analysts on average had been expecting earnings before special items in a range of 21 cents to 24 cents, with an average estimate of 22 cents, according to Reuters Estimates.

Net sales in the third quarter ended April 30 rose 10 percent to $6.2 billion from a year earlier, the company said. Analysts had expected revenue of $6.15 billion.

Cisco forecast sales growth Tuesday in the fiscal fourth quarter that was in line with the range of Wall Street analyst expectations.

The company predicted sales of $6.45 billion to $6.6 billion in the current quarter. Analysts had forecast sales of $6.25 billion to $6.69 billion, with an average estimate of $6.47 billion, according to Reuters Estimates.

Cisco (Research) shares edged higher in after-hours trading after ending the regular session flat on Nasdaq.