Cisco System lose $268m in first quarter

Cisco Systems has posted a first-quarter net loss of $268m.

The figure beat Wall Street's expectations, sending shares of the networking company higher in after-hours trading.

For the three months ending October 27, it lost 4 cents per share, compared with a profit of $798m, or 11 cents per share, in the same period a year ago.

Excluding one-time items, the company earned $332m, or 4 cents per share, compared with $1.4bn, or 18 cents per share, a year ago.

Analysts were expecting a profit of 2 cents a share, according to a survey by Thomson Financial/First Call.

Revenue for the first quarter fell 32%, to $4.4bn over a year ago, but increased 3% over the previous quarter's $4.3bn. Analysts were expecting first-quarter sales of $4.2bn.

Cisco, which makes routers and other devices that move traffic over the internet and other data highways, suffered as businesses in general telecommunications companies specifically cut back spending.

The company's chief executive, John Chambers, said: "Given the very challenging economic and capital spending environment, we were pleased to deliver a solid quarter with good linearity, sequential revenue growth and profitable market share gains."

Shares moved up 75 cents, or 4%, to $18.65 in after-hours trading.

Before the report was released, Cisco gained 64 cents to $17.90 on the Nasdaq.