Cisco posts profit, but shares slip
Rising demand among corporate customers boosts its quarterly profit--but investors hoped for even stronger results.
The world's largest maker of equipment that directs Internet traffic reported a net profit in its fiscal third quarter of $1.2 billion, or 17 cents a share, compared with $987 million, or 14 cents a share, in the year-ago quarter.
Excluding one-time items, Cisco earned 19 cents a share, compared with the 18 cents analysts were expecting according to Reuters Research.
Sales in the quarter ended May 1 rose to $5.62 billion from $4.62 billion last year, topping analysts' estimates for $5.55 billion, according to Reuters Research. Sales rose about 4 percent from the $5.4 billion posted in the preceding quarter.
In February, San Jose, Calif.-based Cisco said sales in its third quarter, historically its weakest, would rise 1 percent to 3 percent from the preceding quarter. However, this year's third quarter was one week longer than usual, leading some analysts to expect even stronger sales growth.
Shares fell to $21.80 in after-hours trading on INET from Tuesday's closing price on the Nasdaq of $22.25 as investors were mildly disappointed in the sales given Cisco's extra week in the quarter.
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