Excluding one-time costs, net earnings for the period were US$1.2 billion, or 16 cents per share, on revenue of US$5.7 billion. That compares with earnings of US$710 million, or 10 cents per share, on revenue of US$3.6 billion in the same period in 1999.
Analysts expected Cisco to earn 15 cents a share, according to a survey by First Call/Thomson Financial.
At the close of regular trading, Cisco shares were down 75 cents for the day to US$65.50. The earnings report was issued after the close of regular trading. In after-hours trading, Cisco shares shot up about US$2.
Including one-time costs, such as acquisition-related costs, fourth-quarter income was US$796 million, or 11 cents a share, compared with US$605 million, or 8 cents a share during the same period a year ago.
Cisco chief executive John Chambers attributed the company's continued growth to the runaway growth of the Internet.
"Today, the Internet continues to drive the strongest U.S. economy in history," Chambers said in a statement. "The second Industrial Revolution is just beginning and businesses and governments are turning to Cisco…We were very pleased with the balance of our business across all key geographies, products and lines of business."
For the fiscal year, including one-time costs, the company earned US$2.7 billion, or 36 cents a share, compared to a profit of US$2 billion, or 29 cents a share. Revenue for the fiscal year increased 55 percent, from US$12.2 billion last year to US$18.9 billion this year.
During the fourth quarter, Cisco completed the acquisitions of eight firms: Atlantech Technologies, JetCell, PentaCom, Qeyton Systems, Seagull Semiconductor, ArrowPoint Communications, InfoGear Technology and SlightPath.
After briefly eclipsing Microsoft, Intel, and General Electric in market value this spring, Cisco's stock has been largely stuck around US$60 for much of the summer.
Investment Bank Merrill Lynch has a 12-month price target of US$84 on the stock, noting that Cisco represents "a bellwether technology company."
"We believe Cisco helps to define growth and valuation parameters for the sector," Merrill Lynch analyst Michael Ching said in a recent report.
Salomon Smith Barney initiated coverage on Cisco this week with a "buy" rating, calling the company's stock a "core investment."
Cisco makes much of the equipment that shuttles data around the Internet and corporate networks. The company has recently embarked on a strategy to claim a share of the market for telecommunications equipment and optical-based systems long a bastion for competitors Lucent Technologies and Nortel Networks.
Cisco continues to battle a wide array of competitors in a variety of markets, including smaller firms such as Extreme Networks, Juniper Networks and Sycamore Networks, and larger firms such as Lucent, Nortel and Alcatel.
Cisco and Lucent are currently embroiled in a suit concerning 10 former Lucent employees who have since joined Cisco's optical networking efforts.
Lucent, which has struggled to meet expectations in recent quarters, announced a corporate restructuring yesterday. Nortel, however, has continued to roll along, surpassing Wall Street expectations on the strength of runaway demand for its optical networking equipment.
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