Cisco Systems’ Profit Soars 34% on Increased Sales
Cisco Systems Inc. said Wednesday that fiscal first-quarter earnings rose 34% as the top computer networking company kept its lead in the corporate market and sold more Internet equipment to phone companies.
Profit before special items rose to $559 million from $415.7 million in the year-earlier period. Earnings per share were up 31% at 34 cents from 26 cents. Cisco was expected to earn 33 cents in the quarter ended Oct. 24, the average estimate of analysts surveyed by First Call.
Cisco’s revenue surged 38% and its profit margin widened slightly as businesses chose its products that link computers over rival gear from 3Com Corp. and others. Cisco also did well in the telecommunications market with equipment that helps phone companies handle data traffic.
Cisco shares, which rose $2.19 to close at a five-week high of $65.56 before earnings were released, climbed as high as $66.50 after the close of regular trading on Nasdaq.
Revenue rose to $2.59 billion from $1.87 billion a year ago. Sales to the telecommunications market increased 50% and were strong in all geographic areas, Chief Executive John Chambers said during a call after the earnings report.
At a Glance
* Avionics and automation giant Rockwell International Corp. reported a fourth-quarter loss due to the restructuring of its semiconductor business.
The Costa Mesa-based company said it lost $126 million, or 65 cents a share, contrasted with a profit of $109 million, or 53 cents a share, in the year-ago quarter.
The latest results include the discontinued semiconductor operations, which Rockwell plans to spin off to shareholders by year-end. Sales for the three months ended Sept. 30 edged up to $1.81 billion from $1.72 billion. Without the discontinued operations, Rockwell’s operating income would be $249 million, or 67 cents a share.
The company’s stock moved up $1.31 to close at $44 on the New York Stock Exchange.
* PacifiCare Health Systems Inc. said third-quarter earnings doubled, beating forecasts, as the No. 1 operator of Medicare health maintenance organizations pushed down medical costs.
Profit before charges rose to $63 million, or $1.38 a share, from net income of $30.8 million, or 67 cents, a year earlier. The earnings beat the $1.18-a-share average estimate. Revenue was little changed at $2.40 billion.
* Hollywood Park Inc. reported third-quarter net income of $2 million, or 8 cents per share, compared with $1.9 million, or 8 cents, a year ago. Revenue rose 3% to $87.5 million, versus $85.2 million a year ago. During the quarter, the Inglewood-based gaming company completed its acquisition of Casino Magic Corp.
* Pasadena-based Jacobs Engineering Group Inc. reported record net income of $14.4 million, or 55 cents per share, on revenue of $545 million. This compares with net income of $12.6 million, or 48 cents, on revenue of $479.1 million, a year ago.
* Keystone Automotive Industries Inc. reported second-quarter net income for the period ended Sept. 25 of $4.1 million, or 23 cents per share, excluding costs, compared with $3.4 million, or 23 cents, a year ago. The Pomona-based auto parts distributor’s revenue rose to $81.4 million from $63.4 million a year ago.
* Lebec-based Tejon Ranch Co. reported third-quarter net income of $2 million, or 16 cents per share, compared with net income of $1.4 million, or 11 cents, a year ago. Revenue rose to $16.7 million from $16.2 million.
* Los Angeles-based Mercury Air Group Inc. reported fiscal first-quarter net income of $1.7 million, before charges, or 24 cents a share, contrasted with a net loss of $2.2 million, or 18 cents, a year ago. Revenue fell to $52.6 million from $69.2 million last year.
* Pacer Technology, the Rancho Cucamonga-based maker of Super Glue and other adhesive products, reported a 112% rise in fiscal first-quarter net income of $956,911, or 5 cents per share, on revenue of $13.7 million, compared with $450,872, or 3 cents, on revenue of $7.4 million a year ago.
* MORE EARNINGS: C3, C5
