Cisco quarterly profit beats Street, shares rise

Wednesday, May 15th, 2013 | Finance News

NEW YORK (Reuters) - Cisco Systems Inc posted a higher than expected quarterly profit, suggesting that technology spending could be picking up for the network equipment maker's customers.

Cisco shares rose about 5 percent after Chief Executive John Chambers said in a statement that the company was seeing good signs in a "slow, but steady economic environment."

"We are starting to see some good signs in the U.S. and other parts of the world which are encouraging," Chambers said.

Profit for the fiscal third quarter ended on April 27 grew to $2.5 billion, or 46 cents per share, from $2.17 billion, or 40 cents per share, in the year-ago quarter.

Excluding unusual items, earnings per share came in at 51 cents compared with Wall Street expectations for 49 cents according to Thomson Reuters I/B/E/S.

Revenue rose more than 5 percent to $12.2 billion from $11.6 billion and compared with Wall Street expectations for $12.18 billion according to Thomson Reuters I/B/E/S.

Cisco shares rose to $22.27 in extended trading after closing at $21.21 on Nasdaq.

(Reporting by Sinead Carew; Editing by Richard Chang)