Cisco results

Cisco posts FY06-1Q net income of $1,3bn (down 7%), on revenues of $6,5bn (up 10%). The results are below expectations, reflecting slow growth in Europe, but a good surprise in the US (+15%). Gross margin topped at 67%, but operating expenses grew 25% to $2,8bn. Cash flow from operations were $1.4bn, down 7%. Cisco completed the acquisitions of KiSS Technology, Nemo Systems, and Sheer Networks. "Q1 was a solid quarter for Cisco, with balanced execution across most of our geographies, market segments and product categories," said John Chambers, Cisco' s CEO. Product sales accounted for about 83% of total sales.