Cisco Systems Reports Third Quarter Earnings

Cisco Systems, Inc., the worldwide leader in networking for the Internet, today reported its third quarter results for the period ended April 30, 2005.

Net sales for the third quarter of fiscal 2005 were $6.2 billion, compared with $5.6 billion for the third quarter of fiscal 2004, an increase of 10.1 percent, and compared with $6.1 billion for the second quarter of fiscal 2005, an increase of 2.1 percent.

Net income for the third quarter of fiscal 2005, on a generally accepted accounting principles (GAAP) basis, was $1.4 billion or $0.21 per share, compared with $1.2 billion or $0.17 per share for the third quarter of fiscal 2004, and compared with $1.4 billion or $0.21 per share for the second quarter of fiscal 2005.

Net sales for the first nine months of fiscal 2005 were $18.2 billion, compared with $16.1 billion for the first nine months of fiscal 2004, an increase of 13.0 percent.

Net income for the first nine months of fiscal 2005, on a GAAP basis, was $4.2 billion or $0.63 per share, compared with $3.0 billion or $0.43 per share for the first nine months of fiscal 2004.

During the third quarter of fiscal 2005, Cisco completed the acquisitions of Airespace, Inc. and Protego Networks, Inc.

"Today's results are a clear indication that our integrated technology strategy is working—customers are realizing the benefits of an intelligent network architecture," said John Chambers, president and CEO, Cisco Systems, Inc.

Chambers continued, "As we continue to manage the business for long-term growth, we are pleased with our very solid results in what is typically a seasonally challenging quarter."