Sales boost for tech giant Cisco

Cisco makes phones and switches that direct internet traffic

Internet equipment maker Cisco Systems has reported a rise in sales, cheering investors fearful that a slowing US economy would take its toll.

Sales rose 10.4% to $9.8bn (�5bn) in the three months ended 26 April from a year earlier, beating forecasts and sending Cisco's shares higher.

But Cisco said net profit fell 5.4% to $1.8bn due to acquisition expenses.

Cisco's earnings are regarded as an indicator of how the technology sector is faring globally.

'Solid report'

Analysts said the results may alleviate concerns about Cisco's business and the technology sector.

Chief executive John Chambers had warned in February that sales could suffer as the economy slowed.

Shares in Cisco, which specialises in routers and switches that direct internet traffic, rose 3% in after-hours trading.

"It's a good solid report relative to expectations and relative to the macro environment," said Mark McKechnie, analyst at American Technology Research.

"Cisco's good at executing but it can't be all that bad if it's beating numbers."

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