Reported by Star-Bulletin staff & wire
Monday, November 6, 2000
Cisco Systems beats earnings forecastsSAN JOSE, Calif. -- Cisco Systems Inc., the world's biggest maker of computer networking equipment, today posted first-quarter earnings that came in above Wall Street expectations and cited sales to Internet service providers, cable and telephone companies.
The San Jose-based company reported after the market closed that pro forma net income was $1.36 billion, or 18 cents a share, for its fiscal first quarter ending Oct. 28. vs. $814 million, or 11 cents per share, in the year ago quarter. The pro forma results excluded the effects of acquisition charges and other items. Analysts had expected Cisco to report earnings of 17 cents a share, according to First Call/Thomson. Cisco has repeatedly posted earnings 1 cent above forecasts in recent quarters. Sales rose 66 percent to $6.52 billion from $3.92 billion. Cisco's stock fell $1.63 to $55.13 during the regular session.
Broadcom buying semiconductor firmIRVINE, Calif. -- Broadcom Corp., the No. 1 maker of semiconductors for cable modems, agreed to buy closely held SiByte Inc. for as much as $2.04 billion in stock to expand its line of data networking chips.
Broadcom will issue 5.6 million shares valued at $1.23 billion to SiByte holders and may issue more shares valued at $810.3 million if SiByte meets certain performance goals, the company said today.
SiByte was founded by former Digital Equipment Corp. executives Dan Dobberpuhl, Amarjit Gill and Leo Joseph. Cisco Systems Inc., the world's biggest maker of networking gear, was an early investor. Broadcom has been on a buying spree in the past year as its stock tripled, acquiring 11 companies.
In other news . . .DELRAY BEACH, Fla. -- Office Depot Inc., the No. 1 retailer of office products, said today it expected sales at stores open for at least a year to fall in the fourth quarter and it would incur a fourth-quarter charge of $2 million to reorganize its call center.