Cisco Q1 Profits Up 29 Percent, Meet Expectations

SAN JOSE, Calif. – Cisco Systems Inc.'s (CSCO) fiscal first-quarter profits jumped 29 percent as the network equipment giant saw growth in its traditional routing markets as well as its emerging technologies like Internet telephone and home networking gear.

For the three months ended Oct. 30, the company on Tuesday reported profits of $1.4 billion, or 21 cents per share, on sales of $6 billion. Cisco earned $1.1 billion, or 15 cents per share, on sales of $5.1 billion in the same period last year.

Excluding special items, the company earned $1.5 billion, or 21 cents per share, compared with $1.2 billion, or 17 cents per share, in the same period last year.

Analysts were expecting San Jose-based Cisco to earn 21 cents per share on sales of about $6.02 billion. In August, Cisco said it expected revenues to be up 16 percent to 18 percent over last year.

The company's growth remains strong despite cautious spending by its corporate customers, softness in the global economy and a lingering uncertainty over whether the high-tech industry's recovery had run its course.

"Our execution also remained solid across our key product categories, industry segments, advanced technologies and geographies," said John Chambers (search), Cisco's chief executive.

Cisco, the world's largest maker of routing and switching equipment for corporate networks, has bet on a handful of advanced technologies — including Internet telephony, home networking and security — to ensure that overall growth continues.

The results were announced after the close of markets. Earlier, shares of Cisco were down 22 cents, to $19.75, on the Nasdaq Stock Market (search). They fell 40 cents, or 2 percent, in late trading.