Cisco Systems this week surpassed analyst expectations with its fourth-quarter and full-year 2006 financial results.
For the period ended July 29, Cisco posted earnings of US$1.9 billion, or 30 cents per share, excluding expenses and other charges. Revenue form the quarter was US$7.98 billion, beating analyst projections by US$60 million.
Earnings came in 2 cents per share better than analyst estimates, according to analysts polled by Thomson Financial.
Sales were up from US$6.6 billion recorded a year ago and US$7.3 billion posted for the third quarter of fiscal 2006. Earnings, excluding charges, for those respective periods were US$1.6 billion, or 25 cents per share, and compared US$1.8 billion, or 29 cents per share.
Net sales for the full fiscal year of 2006 were US$28.5 billion, compared with US$24.8 billion for fiscal 2005. Scientific-Atlanta, the cable TV set top box maker Cisco acquired last year, contributed US$989 million to net sales for fiscal 2006, and US$582 million in the quarter.
Net income for the year, excluding expenses, was US$6.9 billion, or US$1.10 per share, compared with US$6.1 billion, or 92 cents per share, for fiscal 2005.
Analysts expected full-year sales to reach US$28.42 billion and earnings to come in at US$1.08 per share.
"Cisco delivered a record quarter across the board, ending a fiscal year that demonstrated our strong momentum and balance across geographies, products and customer segments," said John Chambers, Cisco president and chief executive officer, in a statement. "It's clear we are executing well and on target against our long-term strategy. Our vision and unique ability to innovate and capture market transitions are why we believe we are poised for continued growth. Our ability to anticipate these changes and execute on our strategy is increasing our market share as well as our share of our customers' total IT spend."
During the quarter, Cisco's core enterprise networking platform, the Cisco Catalyst 6500 LAN switch, surpassed US$20 billion in sales. Cisco also surpassed 8 million IP phones shipped worldwide.
The company also said it now has more than 60 service provider customers for its CRS-1 core router, and that its enterprise installed base of wireless access points surpassed three million in the quarter.