Cisco Systems today reported higher quarterly revenue and earnings that beat average analyst estimates due to cost cuts and the company's broad product range.
First-quarter net income rose 10.6 percent to $US2.6 billion ($A2.5 billion), or 48 cents per share, compared with analysts' average estimate of 46 cents a share as compiled by Thomson Reuters I/B/E/S.
Revenue rose 6 percent from the year-ago quarter to $US11.9 billion, compared with a Wall Street view of $US11.77 billion.
Cisco's shares rose 6.7 percent to $US17.98 in after-hours trading.
Analysts said the results were solid and better than anticipated.
"It's largely due to a product mix - a larger shift to routing - and cost cutting. At first blush these are good numbers in a bad macro (environment)," said Mizuho Securities analyst Joanna Makris.
"This is better than expected. We have been thinking they would squeak by on the top line," she added.
Brian Marshall, an analyst at ISI group, said the results "looked solid."
During the quarter, Cisco saw a jump in security, wireless networking and data centre, up 6 percent, 38 percent and 61 percent respectively.
A sore post was its collaboration unit, dropping 8 percent in the quarter. Switching and routing also fell 2 percent each.
The company forecast a revenue jump of between 3.5 and 5.5 percent in the next quarter.
Last year, Cisco kicked off a corporate restructuring process that has seen it part ways with more than 15,000 employees thanks to early retirement packages, layoffs and asset sales. Over the next year, it will work towards streamlining its processes and procedures, to ensure more rapid execution.
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