Computer networking giant Cisco Systems had some cause for cheer last night despite reporting a sharp slump in profits for the third quarter. The company beat analysts' much lowered forecasts and saw its shares climb on the back of a broker upgrade.
The San Jose, California-based company, which has an operation in Dublin, saw pro-forma profits fall to $203 million or three US cents per share in the third quarter, sharply down on the 13 US cents reported in the same period last year but ahead of the two US cents expected by the markets.
Before a profit warning last month, the market had been looking for pro-forma profits of eight US cents a share.
Allowing for acquisitions and a $3.37 billion charge for restructuring and inventory, the company reported a loss of 37 US cents per share. Sales for the period $4.73 billion, down from $4.93 in the year-ago quarter.
The restructuring costs relate to the shedding of about 17 per cent of the workforce, announced in April.
Chief executive Mr John Chambers said in a statement that the first four months of 2001 "were extremely challenging."
