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Cisco Soars On Strong Earnings, Guidance (Update 1)

Stocks in this article: CSCO

Updated from 4:28 p.m. ET to include second-quarter guidance in the sixth paragraph.

NEW YORK ( TheStreet) -- Shares of Cisco (CSCO) were surging in late trades after the Dow component cruised past Wall Street's expectations for its fiscal first-quarter results.

The networking giant reported non-GAAP earnings of $2.57 billion, or 48 cents a share, on revenue of $11.88 billion, up from a year-ago equivalent profit of $2.32 billion, or 43 cents a share, on revenue of $11.27 billion.

The performance topped the average estimate of analysts polled by Thomson Reuters for earnings of 46 cents per share on revenue of $11.77 billion. On CNBC, CEO John Chambers noted the company's gross margins were 62.7% during the quarter.

"We delivered record results this quarter -- with revenue growth of 6 percent and strong earnings per share growth -- demonstrating our vision and strategy are working," said Chambers in the press release. "Our innovation engine, operational discipline and on-going evolution are enabling us to differentiate in the market."

Cisco generated $2.5 billion in cash flow from operations during the quarter, ending the first-quarter with $45 billion in cash and cash equivalents. Cisco purchased 15 million shares during the quarter, and paid its quarterly dividend of 14 cents per share.

Cisco gave second-quarter guidance that was in line with Wall Street expectations. The company expects second-quarter revenue growth of between 3.5% and 5.5% year-over-year, with non-GAAP earnings coming in between 47 and 48 cents per share. Analysts polled by Thomson Reuters are expecting $12.01 billion in revenue and 47 cents per share.

The stock closed Tuesday's regular session flat at $16.85, down 6.8% so far in 2012. The shares were last quoted at $18.00, up 6.8%, on volume of more than 11 million in the extended session, according to Nasdaq.com.

Interested in more on Cisco? See TheStreet Ratings' report card for this stock.

--Written by Chris Ciaccia in New York

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