Cisco exceeded analyst expectations with its earnings for the third quarter of its fiscal year 2006.
Excluding stock-based compensation and other expenses, Cisco posted net income of $1.8 billion, or $0.29 per share, on sales of $7.3 billion. Analysts were predicting net income of $0.26 per share on revenue of $7.17 billion, according to Thomson First Call.
Sales are up from the $6.2 billion the company brought in during the third quarter of fiscal 2005, and $6.6 billion during the second quarter of fiscal 2006. Net income bested the $1.5 billion, or $0.23 per share, posted in the third quarter of fiscal 2005, and the $1.6 billion, or $0.26 per share, recorded in the second quarter of fiscal 2006.
Including stock-based compensation and other expenses, Cisco posted earnings of $1.4 billion, or $0.22 per share. Net income prior to fiscal 2006 did not include stock-based compensation expenses related to employee stock options and employee stock purchases, but when factored in, net income for the third quarter of fiscal 2005 was $1.2 billion, or $0.18 per share.
Net income for the second quarter of fiscal 2006 was $1.4 billion, or $0.22 per share, which includes stock-based compensation expenses related to employee stock options and employee stock purchases as well as other expenses.
For the first nine months of fiscal 2006, Cisco recorded sales of $20.5 billion, compared with $18.2 billion for the first nine months of fiscal 2005. Excluding expenses, net income for the first nine months of fiscal 2006 was $5.0 billion, or $0.80 per share, compared with $4.4 billion, or $0.67 per share, for the first nine months of fiscal 2005.
Including stock-based compensation and other expenses, net income for the first nine months of fiscal 2006 was $4.0 billion, or $0.64 per share, compared with $3.4 billion, or $0.52 per share, for the first nine months of fiscal 2005.
“Cisco’s third quarter was marked by record revenues and strong results in orders and earnings per share,” said Cisco President and CEO John Chambers in a statement. “We saw a number of highlights this quarter, notably the growth of our U.S. and emerging markets, the continued strength of the commercial market segment and advanced technologies, and the balanced performance across most of our key product categories.”
