Cisco's acquisitions of four firms caused a 37 per cent slide in the networking giant's second fiscal quarter profits, though it did beat analysts' predictions by a penny.
Net income for the period ended 23 January was $288 million, compared to $457 million last year. The figure includes a $349 million charge related to Cisco's second quarter acquisitions of switch supplier Summa Four, fixed wireless specialist Clarity Wireless, network PBX developer Selsius Systems, plus Pipelinks which develops telecomms networking gear.
Revenue increased 41 per cent to $2.9 billion for the second quarter, while for the first six months of Cisco's fiscal 1999 it was $5.42 billion, compared to $3.89 billion for the same period in fiscal 1988.
John Chambers, Cisco president and chief executive, said the company is continuing to push Internet tools into its target markets, which are enterprise, service provider and carrier.
"The Internet revolution will determine which companies survive and which get left behind. Increasingly the Internet is recognised as the key driver in our global economy," he said.
Scientists create a virtual reality simulation of a black hole sitting at the centre of the Milky Way
Simulations like this can help people understand complicated systems in the universe in a better way
The most luminous galaxy ever discovered is cannibalising at least three of its smaller neighbours, study finds
The galaxy radiates at 350 trillion times the luminosity of the Sun
Researchers modify genetic code of cancer-killing virus so it can target cells that protect cancer from immune system
Changing the genetic coding causes the infected cancer cells to produce a protein that kills the fibroblast cells that protect cancer
The findings can help improve the current understanding of brain development disorders, such as epilepsy or autism