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Cisco's earnings rise as sales jump

Cisco Systems Inc.'s fiscal third-quarter profits rose slightly while sales jumped more than 10 percent as the maker of network equipment continued to see momentum both in its core router business and in its emerging technology segments.
/ Source: The Associated Press

Cisco Systems Inc.'s fiscal third-quarter profits rose slightly while sales jumped more than 10 percent as the maker of network equipment continued to see momentum both in its core router business and in its emerging technology segments.

For the three months ended April 30, the San Jose company earned $1.4 billion, or 21 cents per share, compared with $1.2 billion, or 17 cents per share, in the same period last year.

Sales rose 10.1 percent to $6.19 billion in the third quarter of fiscal 2005 from $5.6 billion last year.

Excluding special items, Cisco earned $1.5 billion, or 23 cents per share, compared with $1.36 billion, or 19 cents pre share in the same period last year.

On that basis, the results beat Wall Street expectations. Analysts were expecting the company to post a profit of 22 cents per share on sales of $6.16 billion, according to a survey by Thomson Financial.

"The long-term momentum we are seeing across product families, geographies and market segments clearly points to Cisco's strong competitive advantage," said John Chambers, Cisco's chief executive.

In the first nine months of fiscal 2005, Cisco earned $4.2 billion, or 63 cents per share, on sales of $18.2 billion. In fiscal 2004, it earned $3.021 billion, or 43 cents per share, on sales of $16.1 billion.

The results were announced after financial markets closed.