Riding high on the Internet's continued expansion, data networking firm Cisco Systems Inc. today reported a 40 percent jump in sales for its second fiscal quarter, as well as a healthy increase in profits.
Revenue for the quarter, ended Jan. 23, was US$2.83 billion [B], compared with $2.02 billion [B] for the same period last year, Cisco said.
Pro forma income, which excludes a write off for research and development costs related to acquisitions, was $606 million [M], up 33 percent from $457 million a year ago. Earnings per share were 36 cents, up from 29 cents a year ago, and a penny ahead of the consensus estimate of 29 brokers polled by First Call Corp.
During the quarter Cisco acquired four firms for a combined purchase price of approximately $537 million [M], for which it took a one-time charge of $349 million, or 19 cents per share after tax, as a write-off of in-process research and development. Actual net income including the write-off was $288 million [M], or 17 cents per share.
The net income per share and the number of shares used in the per-share calculation for all periods presented reflect a three-for-two stock split that was effective Sept. 15, 1998, Cisco said.
Despite the positive results, the news apparently wasn't good enough to prevent Cisco's stock price from slipping today. Cisco's shares closed at $112.39, down $2.60, or 2 percent, from yesterday's close. The Nasdaq Composite Index was also off by nearly two percent in today's trading.