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Cisco Reports $10M SAN Sales

Cisco Systems Inc. (Nasdaq: CSCO) revenues were down from a year ago, but it continues to show a tidy profit, even as spending is down in most areas in which it works.

As its revenues slowly slide away in tandem with corporate spending overall, analysts remain watchful of Cisco's core businesses. "We believe the biggest issue for Cisco is the growth, or lack of it, of its core products, routers and switches, which make up in excess of 80 percent of revenues when service revenues related to their sales are included," wrote Legg Mason Inc. analyst Timm P. Bechter in a report issued this morning.

That said, routers and switches were 27 percent and 41 percent of Cisco's revenues during the quarter, which was pretty much on par with its previous quarter's results. Indeed, the pie may be getting smaller, but Cisco doesn't appear to be giving up any of its slice.

While Cisco's core business may be sliding a little, the company's surge into storage is going well, CEO John Chambers said on a conference call today. He singled out SANs as one of the most promising new advanced technology segments for the company.

In the third quarter, he said, Cisco brought in nearly $10 million in storage revenues. The company expects to double that number sequentially each quarter for the next couple of quarters. However, he said, We won’t have a real feel for [how this area will do] before later this year.”

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