Sales boom but profits fall at Cisco

Cisco Systems has posted an 18% increase in sales but falling net profits for its third quarter.

Cisco Systems has posted an 18% increase in sales but falling net profits for its third quarter.

Cisco's total sales rose to $7.3bn (£4.2bn) in the third quarter compared with $6.2bn in the same quarter last year.

The sales rise included $407m from Scientific Atlanta, which Cisco officially acquired in February.

Cisco's net profits fell slightly. Net income fell to $1.4bn from $1.41bn a year ago.

Cisco chief executive officer John Chambers claimed Cisco had enjoyed a “strong” quarter, despite the profits fall, which was partly down to acquisition and stock compensation costs.

The company said it expected sales for the fourth quarter to rise by up to 21%, helped along by Scientific Atlanta’s sales contribution. Excluding Scientific Atlanta, Cisco said it expected sales to rise between 10% and 12.5%.

Scientific Atlanta is a digital content systems company.

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