Cisco's profit falls
Cisco Systems Inc. has reported a drop of a less than 1 per cent in its fiscal third-quarter net income, as options-related charges were higher than the revenue increase from the newly acquired company Scientific-Atlanta cable-box unit.

Cisco said its router sales increased to $1.5 billion, up 5 per cent from a year earlier. Sales of switching equipment grew 13 per cent to $2.69 billion. For its current quarter ending in late July, the company has projected revenue rise of 18 per cent to 21 per cent to $7.8 billion to $7.95 billion. Excluding Scientific-Atlanta, Cisco said it expects revenue growth in the current quarter of 10 per cent to 12 per cent.

For the quarter ended April 29, the company posted net income of $1.40 billion, or 22 cents a share, including an expense for stock-based compensation of $188 million, or three cents a share. That was down from $1.41 billion, or 21 cents a share, a year earlier, when there were more shares outstanding.

Cisco reported its results after the end of regular market trading. At 4 p.m. Nasdaq Stock Market composite trading, Cisco closed at $21.68, down eight cents. In after-hours trading, Cisco fell 1.5 per cent to $21.35.
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