Cisco Systems Inc., based in San Jose, Calif., earned 24 cents a share or net income of $1.5 billion for the quarter.
The company attributed the growth to continued strength in its advanced technologies areas as well as in the commercial and enterprise markets.
"Not only are we achieving the number one position in most of our advanced technologies, but we are gaining market share in every advanced technology area. I believe the commercial market, representing 20 percent of our business, has the highest probability of being the fastest growing segment over the next several years," said CEO John Chambers in Ciscos earnings call Tuesday afternoon.
Cisco revenues were also up sequentially over its third fiscal quarter of 2005 by 6.4 percent, and for the first time it generated revenues of over $1 billion in services in a quarter.
For the full year, Ciscos revenues reached $24.8 billion, an increase of 12.5 percent over fiscal 2004.
Cisco earned $5.7 billion or 87 cents a share for the full year, compared to $4.4 billion or 62 cents a share for fiscal 2004.
Chambers said he was pleased that Cisco achieved an "unusual" balance for the industry across its product lines and market areas.
"The home run for the quarter was the continued balance weve been able to achieve from geographies, customer markets, architectural evolutions and product families. Commercial and enterprise markets both grew sequentially in orders in the mid-teens," he said.
Ciscos routing revenues for the quarter were $1.48 billion, with switching at $2.66 billion, advanced technologies at $1.16 billion (up 27 percent) and services at $1.06 billion—up 15 percent year over year.
At the same time, Ciscos business was split up into 45 percent enterprise, 25 percent each for commercial and service provider sectors, and 3 percent to 4 percent in the consumer market segment.
Although Cisco is routinely reluctant to comment on acquisition rumors, Chambers took the opportunity to deny the recent Nokia acquisition rumor.
"Our ideal acquisition target is a company with 100 people (at a company geographically close with products Cisco customers want it to have). A very unlikely target acquisition is a large company halfway around the world," he said.
Chambers also hinted at new advanced technology areas it is looking to address over the next 12 months, although he did not specify what they are.
Cisco during the quarter managed to achieve a 4-year-old productivity goal of generating $700,000 of revenue per employee—compared to $442,000 per employee it was generating four years ago.
It also sold over 6 million IP phones during the quarter.
Other achievements during the quarter include the completed acquisitions of FineGround Networks Inc., M.I. Secure Corporation, NetSift Inc., Sipura Technology Inc., Topspin Communications Inc. and Vihana Inc.