Cisco Shares Jump on Strong Numbers

Updated from 5:11 p.m. EDT

Cisco (CSCI) blew by analysts estimates for its fiscal third quarter.

The networking gearmaker posted an adjusted profit, excluding special items of 30 cents a shares, down from 38 cents in the year-ago quarter, but ahead of analysts' expectations for a pro forma profit of 25 cents a share, according to Yahoo! Finance.

Sales for Cisco's fiscal third quarter ended last month were $8.2 billion, down from the $9.79 billion level at the same time last year. Analysts were looking for $8.07 billion in sales for the April quarter.

Cisco expanded its gross margin to 64.1% from 63% in the prior quarter, but saw a drop in cash generated from operations, falling $2 billion from $3.2 billion in prior quarters.

"Cisco delivered solid financial performance despite a challenging global economy and period of evolving market dynamics," CEO John Chambers said in a press release.

Cisco shares were up 30 cents, or 1.5%, to $19.91 in afterhours trading Wednesday.

Wall Street was eagerly awaiting Cisco's outlook for the current quarter and business in general. During a conference call to discuss quarterly results, Chambers took a very cautious approach, saying it was difficult to make a certain forecast.

Chambers did say sales for the July quarter would be down 17% to 20% from year-ago levels. That puts the revenue range between $8.3 billion to $8.6 billion or a midpoint of $8.45 billion. That is better than analysts' estimates, which call for sales of $8.26 billion.