Cisco profits rose 18 per cent in its first quarter as the benefits of an extensive round of lay-offs and cost-cutting took effect, the networking equipment maker said Tuesday.
For the quarter the company earned $2.6 billion, compared to $2.3 billion a year earlier, while revenue increased 6 percent to $11.9 billion from $11.26 billion in the same quarter last year.
The results beat expectations of analysts who had been pessimistic about the maker of advanced routers and other equipment that powers the internet because of the increasing use of smart software to fulfill many of the functions that Cisco's hardware has traditionally performed.
"Our innovation engine, operational discipline and ongoing evolution are enabling us to differentiate in the market," said John Chambers, Cisco's chief executive, in a statement accompanying the earnings. "Cisco is poised to lead."
Cisco's shares rose over 6 percent in after hours trading after closing $16.85 at the close of regular trading.
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