Cisco’s 2Q Profits Fall 37 Pct.
SAN JOSE, Calif (AP) _ Cisco Systems Inc. reported Tuesday a 37 percent drop in profits for its latest quarter despite a 40 percent jump in revenues as the computer networking bellwether absorbed costs related to four acquisitions.
The company’s net income for its second quarter ended Jan. 23 came to $288 million, or 17 cents per share. That’s down from $457 million, or 29 cents per share, in the same period a year ago.
Excluding one-time expenses of $349 million charge related to acquisitions, Cisco earned $606 million, or 36 cents per share, for the period, edging most Wall Street forecasts.
Revenues surged 40 percent to $2.827 billion, up from 2.016 billion a year ago.
Cisco’s stock, which has nearly tripled since the market began rebounding in early October, fell $2.62 1/2 to $112.37 1/2 in Nasdaq trading before the report, which was released after the closing bell. The shares continued to fall in after-hours trading, suggesting that investors were disappointed that Cisco, one of the most popular technology stocks, didn’t beat expectations by a wide margin.
Cisco, based in San Jose, Calif., is the world’s biggest maker of equipment linking computers in networks.