Cisco last week announced its first-quarter revenue had soared 49 per cent to $US3.9 billion, while the networking company's actual net income slipped from that reported a year ago, thanks to acquisition-related costs.
The vendor also announced that it plans to buy Aironet Wireless Communications, which makes technology for building high-speed wireless local area networks (LANs), for about $800 million in stock.
Cisco attributed its sharp increase in revenue to the Internet's continued strong growth. `The Internet con tinues to be a powerful force fuell-ing the global economy,' said John Chambers, Cisco's president and chief executive officer, in a statement.
Net income for the quarter ended October 30, including charges, was $US438 million, or 13 cents per share, compared with $512 million, or 15 cents per share, reported for the same period a year ago, Cisco said.
During the first quarter, Cisco completed the acquisitions of Monterey Networks and MaxComm Technologies for a combined price of about $590 million.
The company took a related charge of approxi-mately 11 cents per share as a write-off on purchased in-process research and development.
Excluding those charges, pro forma net income for the quarter was $837 million or 24 cents per share, compared with $561 million or 17 cents per share for the year ago quarter, Cisco said.
The $3.9 billion in sales for the quarter compares with sales of $2.6 billion a year ago, Cisco said.