Cisco has benefited as companies have updated their networks

Cisco produces equipment that powers the internet, and is seen as a bellwether for the technology sector.

The firm had been expected to suffer from slower economic growth and a dip in corporate and consumer spending.

Instead, boss John Chambers said that Cisco's "momentum remains strong" and the company was winning market share.

'Anaemic technology market'

Cisco said sales were $7.98bn (�4.2bn) in the three months to 29 July, compared with $6.6bn in the same period a year earlier.

Profit excluding special items was $1.9bn from $1.6bn a year ago. Net income was little changed at $1.544bn from $1.540bn a year earlier.

"The revenue number is pretty good," said Sunil Reddy of Fifth Third Asset Management. "You put that in the background of a decent valuation and the anaemic technology market and Cisco has delivered a pretty good number."

Cisco boss John Chambers was upbeat about the firm's prospects

The company's shares surged 10% in after-hours electronic trading in New York, signalling that they will put in strong gains when the market opens later on Wednesday.

Helping boost optimism was Cisco's forecast of strong sales growth in the current, or fiscal first, quarter.

Cisco is forecasting sales growth between 15% and 20% in the 12 months to the end of June, 2007. It expects growth of between 19% and 21% in the current quarter.