1:51 PM
Cisco revenue rises 19 percent
Addison Ray
NEW YORK | Wed Nov 10, 2010 4:21pm EST
NEW YORK (Reuters) - Cisco Systems Inc (CSCO.O) reported a 19 percent jump in quarterly revenue, as a recovering economy encouraged more customers to upgrade their networks to handle growing Internet traffic.
Cisco said revenue in the fiscal first quarter ended October 30, rose to $10.75 billion from $9.02 billion a year earlier. Analysts on average expected $10.74 billion, according to Thomson Reuters I/B/E/S.
Net profit rose to $1.9 billion, or 34 cents a share, from $1.8 billion, or 30 cents a share, a year earlier. Excluding items, earnings per share rose to 42 cents, beating Wall Street's expectations by 2 cents.
Cisco's customers who cut back during the recession have recently begun spending more on their network infrastructure, with phone companies buying more advanced equipment to handle growing smartphone traffic and corporate clients upgrading their data center equipment.
The pace of the recovery had been in doubt, particularly after Cisco Chief Executive John Chambers spooked tech investors last quarter by citing "unusual uncertainty" among customers.
Cisco shares, which had risen in recent weeks, fell around 1.6 percent after-hours. They closed at $24.49 earlier on Wednesday.
(Reporting by Ritsuko Ando; Editing by Bernard Orr)
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