Cisco boasts profit and revenue boost

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Cisco boasts profit and revenue boost

Cisco Systems reported an increase in earnings and revenue for the fourth financial quarter of 2002, exceeding profit, but not revenue, expectations.

The company also announced that chief financial officer Larry Carter plans to retire in May. Dennis Powell, the vice-president of corporate finance at Cisco, is expected to replace.

Revenue for the quarter ending 27 July was $4.82bn (£3.13bn), compared with $4.3bn (£2.8bn) for the same period last year.

Pro forma net income for the fourth quarter of 2002, which excluded certain charges, was $1bn (£650m). For the same period last year, the figure was $163m (£106m).

Including special charges under GAAP (generally accepted accounting principles), Cisco reported net income of $772m (£502m), compared with $7m (£4.5m) for the same period last year.

Charges for the 2002 quarter included approximately $260m (£169m) related to the closing of the acquisitions of Hammerhead Networks and Navarro Networks. The company also took a one-time charge of $28m (£18.2m) as a write-off of in-process research and development.

Spending on networking equipment has been especially hard hit as the IT industry suffers from a continued downturn.

However, Cisco has begun to identify improvements in enterprise and commercial markets in the US.

For the full fiscal year 2002, revenue totalled $18.9bn (£12.3bn), compared with $22.3bn (£14.5bn) for 2001. Not accounting for charges, pro forma net income for fiscal 2002 was $2.9bn (£1.89bn), compared with pro forma net income of $3.1bn (£2bn) for 2001.

Net income for the year based on GAAP was $1.9bn (£1.24bn), compared with a net loss of $1bn (£650m) for 2001.

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