CISCO Systems, which is in the process of opening a research and development centre in Edinburgh, has topped analysts' expectations with a 33% surge in second-quarter profits.
The California-headquartered company said profits before charges reached $606m (#367m) during the three months to January 23, representing the latest in a string of strong quarterly performances. This equated to profits of 36 cents (21.8p) per share, compared to analysts' expectations of 35 cents a share.
The company benefited from strong sales of gear to telecommunications carriers that are switching over from older voice networks to ones that ''digitise'' information. Year-on-year sales of this equipment rose at least 50% in all geographic territories, and now represent nearly 30% of Cisco's total revenue.
Cisco, which is the world's number one computer networking company, announced last month that its first R&D centre outside North America would open in Edinburgh. The operation already has a skeleton staff, and plans to employ 60 people by the year end.
Some 55% of the company's orders during the quarter came from the US. The Americas as a whole accounted for 61% of orders, while Europe, the Middle East and Africa chipped in an additional 29%.
The remaining 10% of orders were split between Japan and the rest of the Asia-Pacific region. Orders from Japan were up 9% on the first quarter, suggesting Cisco's decision to beef up its sales force there was paying off.
Total sales for the quarter rose 40% to $2.83bn (#1.72bn). Including acquisition-related charges of $318m (#193m), Cisco produced profits after tax of $288m (#175m).
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