Cisco says client spending is holding up

Cisco, seen as a bellwether for the tech sector as a whole, said it had enjoyed solid growth in traditional IT network services and new technologies.

Profits for the three months to 30 October were up from $1.2bn last year, with sales rising 17% to $6bn.

Cisco's figures came in narrowly ahead of analysts' forecasts.

Solid execution

"On the face of the numbers, Cisco had a pretty good quarter," said Steve Kamman, analyst for CIBC World Markets.

The figures were released after the end of trading on Tuesday in which Cisco's shares fell 40 cents to $19.75.

Analysts have been concerned about a slowdown in corporate spending on IT and a general softness in the economy.

Cisco said it had enjoyed growth from advanced technologies such as internet telephony as well as its core internet routing technology.

"Our execution also remained solid across our key product categories, industry segments, advanced technologies and geographies," said Cisco's chief executive John Chambers.