Cisco's Q2 revenues jump 40 per cent

Riding high on the Internet's continued expansion, data networking firm Cisco Systems on Tuesday reported a 40 per cent jump in sales for its second fiscal quarter, as well as a healthy increase in profits.

Revenue for the quarter, ended January 23, was $US2.83 billion, compared with $2.02 billion 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, up 33 per cent 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.

During the quarter Cisco acquired four companies for a combined purchase price of about $537 million, 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, 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 September 15, 1998, Cisco said.

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