Cisco Profit Falls on Acquisition Charge
Cisco Systems revenue rose more than 10 percent in the company's fiscal third quarter, though its net income fell due to an acquisition charge and other one-time factors.
Revenue rose to US$9.8 billion from $8.9 billion a year earlier, while net income was $1.8 billion, down 5.4 percent from $1.9 billion in last year's third quarter. Cisco earned $0.29 per share, down from $0.30 per share a year earlier.
But excluding certain charges, earnings were $0.38, up from $0.34 a year earlier, Cisco said. The company took an acquisition-related charge of $246 million, or $0.04 per share, in the quarter.
The charge was related to Cisco's acquisition of the remaining 20 percent of data-center technology vendor Nuova Systems.
Cisco is still comfortable with its long-term revenue growth forecast, Chairman and CEO John Chambers said on a conference call following the release.