How did Cisco earnings beat expectations?

August 07, 2007

Posted by aug072007

( 1 rating )

Computer networking company Cisco Systems reported higher-than-expected earnings on a boost in quarterly sales, the company announced Tuesday.

Cisco reported net income of $1.9 billion or 31 cents per share. Excluding certain charges, the company earned $2.3 billion or 36 cents per share.

Analysts were expecting Cisco to report earnings of 35 cents a share for the quarter.

Quarterly sales reached $9.4 billion, up 18 percent from a year ago.

For the full fiscal year ending July, sales reached $34.9 billion, up 23% from fiscal 2006 thanks to a boost in sales following its acquisition of Scientific-Atlanta last year.

That segment contributed $2.8 billion to net sales for the year, compared with $989 million in the prior year.

Overall, Cisco earned $7.3 billion, or $1.17 a share for the full fiscal year.

Cisco's (up $0.19 to $29.69, Charts, Fortune 500) shares were edging slightly lower in after-hours trading on the Nasdaq Tuesday.

Cisco Chief Executive John Chambers, in a conference call following fiscal fourth-quarter results, also forecast first-quarter revenue growth of about 16 percent from a year earlier, Reuters reported.

He also raised the company's long-term revenue growth forecast to an annual 12 percent to 17 percent from a previous range of 10 percent to 15 percent.

-- from staff and wire reports Top of page

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