Cisco Systems last night reported better than expected quarterly profits and gave a strong outlook, saying its market share grew as companies upgraded their networks.
John Chambers, chief executive of the world's top maker of routers and switches that direct internet traffic, said its 'momentum remains strong', surprising analysts who had expected more caution amid a slowing economy. He forecast double-digit percentage revenue growth in the current quarter.
Cisco said sales for its fiscal fourth quarter ended July 29 rose to $7.98 billion from $6.6 billion, topping the average Wall Street forecast of $7.92 billion. Profit excluding one-off items amounted to a better than expected 30 cents per share.
Cisco's results, often regarded as a bellwether for technology companies, may help to turn some of the negative sentiment that has dogged technology stocks in recent months.
The quarterly results also showed Cisco reaping $582m in sales from cable set-top box maker Scientific Atlanta Inc. It closed the acquisition in February. Network equipment for business and telecommunications networks accounts for most of Cisco's revenue, but the acquisition highlighted its entry into the consumer market.
