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Cisco posts higher quarterly profit

By Sinead Carew

The results were in line with Wall Street expectations, and Cisco shares rose 1.2 percent as investors waited for company executives to give their outlook on a conference call.

Cisco, which makes routers, or switches that direct traffic on data networks, said its profit for the second quarter ended January 25, was $2.1 billion, or 33 cents per share, compared with $1.9 billion, or 31 cents a share, in the year-ago quarter.

Sales rose 16.5 percent to $9.8 billion, in line with expectations.

"January is usually the seasonally softest quarter for them. All in all, I'm encouraged by this, and I think our long-term thesis for Cisco as a global-growth story is well under way," he said.

Cisco has been moving into new markets such as video conference and high-end video conference and also owns television set top box maker Scientific Atlanta, areas that Chief Executive John Chambers said were paying off.

He also said in a statement that the just-reported quarter was marked by strong revenue and order growth, paced by a broad base of geographic regions, products, services and customer markets.

Cisco shares closed down 18 cents at $23.08 on Nasdaq on Wednesday. In after-hours trade, the stock rose to $23.84.

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