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Cisco's Profits Rise, Aided by Software, Services Growth

Cisco Systems Inc. (CSCO) delivered a sign of improving tech-sector demand as the company's newer software and services businesses more than offset weaker revenue from its traditional networking products.The San Jose, Calif., company's fiscal third-quarter profit grew 14%, topping Wall Street's expectations after a slew of negative results from peers in the information-technology industry."Enterprise growth is on a very good trend," Chairman and Chief Executive John Chambers said during a call with analysts. "It's nothing to write home about, but it's very solid economic growth"Cisco said it expects its core profit to reach between 50 cents and 52 cents a share this quarter, bracketing analysts' average target of 51 cents, according to a poll by Thomson Reuters. Its revenue target left more room for surprises, calling for 4% to 7% growth. That implies some $12.7 billion to $13.07 billion of revenue; analysts were expecting $12.47 billion.Shares jumped 8.5% to $23.01 as improving produc...

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