Cisco earnings up on lower revenue

Cisco Systems has posted revenue of $4.6bn (£2.9bn) for its third quarter which ended 26 April, down from $4.8bn a year...

Cisco Systems has posted revenue of $4.6bn (£2.9bn) for its third quarter which ended 26 April, down from $4.8bn for the same period last year.

On a pro forma basis net income for the networking giant was $1.1bn (£700m), up from $838m from the same period last year.

Using GAAP (Generally Accepted Accounting Principles), the company posted net income of $987m (£614m), up from $729m a year earlier.

The quarter saw Cisco act on its determination to compete with rivals on the low end, agreeing in March to acquire Linksys Group in a deal that is expected to close later this quarter.

The company also unveiled its Cisco 3750 Series stackable switches for medium-sized companies and enterprise branch offices, which will begin shipping this quarter.

The company expected revenue to remain flat..

"In areas that we can focus on or control or influence... I continue to be even more optimistic than I was going into the last quarter," said Cisco president and chief executive officer John Chambers.

Other factors, such as the economic outlook of Cisco's customers, are less certain, he added.

Cisco's core products - routers and switches - continued to bring in most of its revenue as the breakdown between product segments stayed roughly the same as in the previous quarter.

Routers brought 27% of revenue, up from 26% for the second financial quarter. Switches contributed 41%, the same as the previous quarter. Access equipment fell to 4% and services contributed 18%.

Technologies such as storage networking, security and IP (Internet Protocol) telephony contributed 10%.

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