Cisco Tops Forecast as Sales Surge 61%

Cisco Systems Inc. on Tuesday reported fiscal fourth-quarter profit that topped expectations, paced by strong sales to Internet service providers and cable and telephone companies. It also said its No. 2 executive, Don Listwin, is leaving to head another company.

The world’s biggest maker of computer networking equipment said profit from operations jumped 69% to $1.2 billion, or 16 cents a share, in the period ended July 29, as sales rose 61% to $5.72 billion.

The consensus forecast was 15 cents a share, according to First Call/Thomson Financial.

Cisco, which has become a technology bellwether in the last two years, continues to benefit from the torrid growth of the Internet as companies reposition themselves for the “new economy.” Especially noteworthy, analysts said, was the stunning sales growth in the quarter. It was the 10th quarter in which sales growth was higher than the year-earlier period.

Cisco Chief Executive John Chambers said that sales were balanced across all geographic regions where it sells its wares, and across all its lines of business.

“Given our size, we’re very pleased with our results,” Chambers said in a conference call to discuss the results. “We see more opportunities in the combined video, voice and data markets than we can meet.”

Listwin, who joined Cisco 10 years ago and was among its fastest-rising executives, is leaving to become chief executive of a company in which Cisco holds a minority stake and with which it has a partnership. That company will be announced today.

Listwin was often seen as an eventual successor to Chambers. He was responsible for Cisco’s New World business strategy and ran the business of selling gear to telecommunications and Internet service providers, as well as corporate marketing.

Cisco closed off 75 cents at $65.50 in regular Nasdaq trading, before the results were released. In trading after the close, the shares rose to $68.39 on Instinet.