(By Balaseshan) Cisco Systems Inc. (NASDAQ: CSCO) reported an 18 percent increase in quarterly earnings on strong sales growth and lower expenses. Results exceeded the Street's expectations, sending its shares up 3.26 percent in the aftermarket.
Earnings for the first quarter were $2.09 billion, or $0.39 per share, up from $1.78 billion, or $0.33 per share, last year. Adjusted earnings per share (EPS) rose to $0.48 from $0.43.
Sales increased 6 percent to $11.88 billion.
Analysts, on average, polled by Thomson Reuters expected a profit of $0.46 per share on revenue of $11.77 billion for the first quarter.
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Product sales increased to $9.30 billion from $8.95 billion, while service sales rose to $2.58 billion from $2.30 billion.
Operating expenses decreased 2 percent to $4.59 billion. Operating income rose to $2.65 billion from $2.21 billion.
Cash flows from operations were $2.5 billion for the first quarter, up from $2.3 billion last year. Cash and cash equivalents and investments were $45.0 billion at the end of the first quarter of fiscal 2013, down from $48.7 billion at the end of the fourth quarter of fiscal 2012.s
CSCO closed Tuesday's regular session down 0.03 percent at $16.85. The stock has been trading between $14.96 and $21.30 for the past 52 weeks.