Steady demand boosts Cisco profits

Technology company Cisco Systems increased its profits by 12 per cent in the fourth quarter, driven by steady demand for routers…

Technology company Cisco Systems increased its profits by 12 per cent in the fourth quarter, driven by steady demand for routers and other equipment.

However, Cisco's revenue forecast for the current quarter was slightly less than Wall Street expectations, and the company's shares fell 3.9 per cent in after-hours trade.

Net income for its fiscal fourth quarter, ended July 30, rose to $1.54 billion, or 24 cents per share, from $1.38 billion, or 20 cents, in 2004. Revenue rose 11 per cent to $6.58 billion from $5.93 billion.

The Internet equipment manufacturer's gross margin in the quarter was 68 per cent, beating the its 67 per cent forecast. Excluding items, Cisco said it had a profit of 25 cents per share.

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For the current quarter, Cisco expects revenue to rise about 10 per cent from the year-ago period, chief executive John Chambers said, which estimates revenue at $6.57 billion.

Analysts had expected the company to post revenue of $6.63 billion for the current, first quarter.