Cisco reports profits dip


Cisco reports profits dip

Antony Savvas

Cisco Systems has posted a reduced first quarter net profit for the three months ending 29 October.

The world’s leading networking company also issued a sales forecast that was below market expectations for the current quarter.

As a result, the company’s shares dipped 11 cents on the US Nasdaq exchange.

Cisco’s net profit for the first quarter fell from the $1.4bn (£823m) a year ago to $1.3bn this time. Part of the fall came as the company reported stock options for its employees as a cost for the first time.

For the current quarter, Cisco predicted sales growth of up to 9%. But this was still below market expectations, so its share price fell.

First quarter sales rose 9.7% to $6.55bn (£3.85bn), again, slightly below analyst forecasts.

Cisco was recently forced to patch its main router operating system, to stop hackers from taking over companies’ and ISPs’ networks.

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