May 9, 2006
At the close of the market today, Cisco Systems reported a small reduction
in quarterly earnings on stock options distribution, but revenue still beat Wall
Street concensus estimates, boosted in part by the acquisition of cable set-top
box manufacturer Scientific-Atlanta.
Cisco's stock rose more than 5 percent in aftermarket trading following the
company's earnings release.
Cisco posted net income of $1.4 billion, or 22 cents per share, for its fiscal 2006 third quarter, compared with $1.41 billion, or 21 cents per share, in the same quarter last year.
Excluding items and stock-based compensation costs, Cisco earned 29 cents per share, compared with analysts' expectations of 26 cents a share.
Revenue rose to $7.32 billion, compared with $6.19 billion in the same quarter last year, beating Wall Street forecasts of $7.16 billion.
Network equipment for businesses and telecommunications accounts for most of Cisco's revenue, but the company is increasing its reach into the consumer market. Its biggest move so far into that area was the purchase of Scientific-Atlanta for about $7 billion last November.
Cisco's shares trade at about 18 times 2007 earnings, below the average valuation of about 21 on the Dow Jones U.S. Telecommunications Equipment Index.
Stock-based compensation expense related to employee stock options and employee stock purchases amounted to $188 million, net of tax, or 3 cents per share, it said.
Cisco shares rose more than 5 percent in after-hours trading on the Inet electronic brokerage. The share had closed down 8 cents, or 0.4 percent, at $21.68 on the Nasdaq earlier Tuesday.
Source: CNN Money
Bookmark this Tech Blog by
clicking here.
Home |
Write to us
