Cisco Reports Strong Growth

Cisco Systems is one of the technology industry's bellwether companies whose earnings statements can move the market up or down. So the strong report the company issued Tuesday may provide good news for the rest of the tech sector.

Cisco ended its fiscal fourth quarter and 2004 on a positive note, matching advance projections and third-party estimates. During the fourth quarter ended July 31, revenue was $5.9 billion, up 26% from the $4.7 billion reported in the same quarter a year ago. Net income for the quarter grew 30%, from $983 million to $1.4 billion this year. Earnings per share went from 14 cents to 20 cents.

For fiscal 2004, Cisco's revenue was $22 billion, 16.8% higher than the $18.9 billion reported in 2003. Net income for the year was $4.4 billion, 19% higher than net income of $3.6 billion last year. Annual earnings per share grew from 50 cents to 62 cents.

Cisco president and CEO John Chambers said in a statement that advances in emerging markets, along with innovation in the core business and advanced technologies, led to the positive results.