(By Balasheshan) Cisco Systems Inc. (NASDAQ:CSCO
) reported a 20% jump in third quarter earnings on strong sales growth. Despite adjusted earnings and sales exceeding Street's expectations, its shares fell 2.72% in aftermarket.
Earnings for the third quarter were $2.17 billion or $0.40 per share, up from $1.81 billion or $0.33 per share last year. Adjusted earnings rose to $2.61 billion or $0.48 per share from $2.35 billion or $0.42 per share.
Sales increased to $11.59 billion from $10.87 billion. Analysts had expected a profit of $0.47 per share on revenue of $11.57 billion.
Product sales increased to $9.11 billion from $8.67 billion, while service sales rose to $2.48 billion from $2.20 billion.
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Gross margin rose marginally to 61.9% from 61.3%, while adjusted gross margin declined to 63.1% from 63.9%.
Operating expenses decreased to $4.42 billion from $4.48 billion. Operating income rose to $2.75 billion from $2.18 billion.
Cash flows from operations were $3.0 billion for the third quarter, unchanged from last year. Cash and cash equivalents and investments totaled $48.4 billion at the end of the third quarter, compared with $44.6 billion at the end of fiscal 2011.
CSCO closed Wednesday's regular session up 0.37% at $18.78. The stock has been trading between $13.30 and $21.30 for the past 52 weeks.