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.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

More about CiscoFirst Call

Show Comments