Cisco Systems’ Quarterly Profit Soars by 49%

Cisco Systems Inc., the world’s largest maker of Internet equipment, posted a 49% jump in profit for its fiscal fourth quarter and announced its first acquisition in the wireless corporate network market. San Jose-based Cisco’s profit rose to $837 million, or 24 cents a share, a penny higher than the consensus estimate, as revenue climbed 49% to $3.88 billion. The results exclude a one-time charge of $381 million, or 11 cents a share. Cisco shares fell $1.06 to close at $74.25 in regular Nasdaq trading, then rose to $76.25 in after-hours trading. The earnings were released after the markets closed.

Meanwhile, Nortel Networks Corp., one of the world’s largest communications equipment makers, said it is slashing some prices and allowing open access to its Internet technology in an assault on rival Cisco. Brampton, Canada-based Nortel also said it is allying with semiconductor giant Intel Corp. to add parts of its Internet platform to Intel’s Web products. Nortel fell $1.69 to close at $67.81 on the NYSE.