Cisco earnings increase 40% in Q2

Cisco's second-quarter profit surged nearly 40 % as the world's largest maker of networking gear benefited from equipment upgrades to support bandwidth-hogging video downloads, an Associated Press report said.

The Associated Press report said the company also raised its revenue guidance for the current quarter, apparently quashing near-term fears about slowing growth as its customers complete the most extensive round of network upgrades since the pre-Y2K scramble.

Cisco shares jumped nearly 5% in extended-session trading, the report said.

For the quarter ended January 27, Cisco's net income was $1.9 billion, compared with $1.4 billion for the same period last year, the report added.

Excluding one-time charges, Cisco said it earned $2.1 billion for the quarter.

The company, which makes the routers and switches that direct data over computer networks, said revenue for the quarter was $8.4 billion, a 27% jump from the $6.6 billion in the same period last year.

Analysts were expecting Cisco to earn, on average, $0.31 per share on $8.28 billion in revenue, according to a survey by Thomson Financial, the report said.