Cisco Systems reported a better-than-expected quarterly profit on Wednesday, driven by gains from its newer businesses such as security, which more than offset the declines in its traditional switches and routers business.
The world’s largest network gear maker forecast second-quarter adjusted profit between 58 cents to 60 cents per share, largely above analysts’ estimate of 58 cents, according to Thomson Reuters I/B/E/S.
The company’s shares (CSCO) rose 3.2% to $35.20 after market.
Revenue from Cisco’s security business — which offers firewall protection and breach detection systems — rose 8% to $585 million.
Cisco has shifted its focus to newer high-growth areas such as security, Internet of Things and cloud computing like other legacy technology companies.
The company’s net income rose to $2.39 billion, or 48 cents per share, in the first quarter ended Oct. 28, from $2.32 billion, or 46 cents per share, a year earlier.
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Excluding items, the company earned 61 cents per share. Revenue fell 1.7% to $12.14 billion.
Analysts on average had expected Cisco to report a profit of 60 cents per share on revenue of $12.11 billion.
