Cisco sees earnings beat forecast

Cisco remains confident about its long-term growth prospects

Internet equipment maker Cisco Systems has reported better-than-forecast earnings and said it expects the impact of the slowdown to be limited.

Profits rose 4.4% to $2.01bn (£1.02bn) in the three months to 26 July, compared with $1.9bn a year earlier.

Cisco said it had "very strong" confidence in its long-term revenue growth targets of 12% to 17%.

Investors were buoyed by the positive outlook and in after-hours trading Cisco's shares rose 7%.

"Cisco reiterated its long-term growth guidance, giving jittery investors come confidence," said Mark Sue, an analyst at RBS Capital Markets.

Investors had feared that as the world economy slows, firms would be less willing to spend money on upgrading technology.

"During each economic slowdown, Cisco has always navigated through them very effectively, gained wallet share and in my opinion market share," said Cisco's chief executive John Chambers.