Cisco profit drops

Sales up year on year, but profit slips for the networking giant

Profit has dipped for Cisco for its second quarter 2006, but turnover was up 9.3 per cent from the same period last year.

The networking giant's sales were $6.6bn, while pre-tax post-exceptional profits fell to $1.3bn for the quarter from $1.4bn over the same period last year.

John Chambers, chief executive at Cisco, said: "We're pleased with the solid revenue and earnings per share results Cisco delivered during its second quarter, but also especially pleased with our strong order momentum.

"This proves our strategy is working in terms of the convergence of voice, video and data along with our balanced approach to our customer segments, core and advanced technologies, business and technology architecture and key geographic theaters.

"The network is enabling the next generation of IT. As all forms of communications are migrating into the network, it is transforming the way our customers create business models and design new forms of communication-based services for their customers, employees and citizens," added Chambers.