Cisco 4Q Profit Exceeds Estimates
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Networking gear provider Cisco Systems Inc. exceeded Wall Street estimates yesterday with fiscal fourthquarter profit that was almost the same as in the year-ago period, before the company introduced significant accounting changes.
Net income for the three months ended July 29 was $1.544 billion, or 25 cents per share, compared with $1.540 billion, or 24 cents per share, in the fiscal fourth quarter of 2005.
The newest results would have shown an increase of nearly 22% in net income, except for $152 million in compensation expenses related to employee stock options and employee stock purchases. Had those accounting changes been in place last year, Cisco would have reported fiscal fourth quarter profit of $1.265 million, or 20 cents a share, in 2005.
Quarterly sales at Cisco, one of the world’s largest makers of routers, switches and other devices that connect computers to the Internet, rose to $7.98 billion from $6.6 billion in the same quarter of 2005.
