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Cisco Systems reported strong net earnings in the second quarter though sales didn't live up to expectations.

Net sales for the second quarter of fiscal 2005 were $6.1 billion, compared with $5.4 billion for the second quarter of fiscal 2004, an increase of 12.3%, and compared with $6.0 billion for the first quarter of fiscal 2005, an increase of 1.5%.

Net sales for the first six months of fiscal 2005 were $12.0 billion, compared with $10.5 billion for the first six months of fiscal 2004, an increase of 14.6%.

Net income for the first six months of fiscal 2005, on a GAAP basis, was $2.8 billion or $0.42 per share, compared with $1.8 billion or $0.25 per share for the first six months of fiscal 2004. Pro forma net income for the first six months of fiscal 2005 was $2.9 billion or $0.44 per share, compared with $2.5 billion or $0.35 per share for the first six months of fiscal 2004.

During the second quarter of fiscal 2005, Cisco completed the acquisitions of BCN Systems, Jahi Networks, NetSolve, and Perfigo.

"This quarter's solid results, highlighted by record net income and continued order growth across our routing, switching, and advanced technologies, indicate continued product leadership and solid market momentum," said John Chambers, president and CEO, Cisco Systems. "Our strategy uniquely differentiates Cisco from the rest of the industry by providing an integrated technology and business architecture perspective."

Chambers added, "Not only are we creating what we expect will be a number of new billion dollar revenue streams for Cisco, but our value proposition to customers continues to expand as these advanced technologies integrate into the core network fabric."

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