CISCO's RESULTS ADD EVIDENCE OF A RECOVERY FOR TECHNOLOGY. The NYTimes reports how Cisco's announcements of its sales, net income and strategy influenced the market's reaction and therefore the value of its stock.

Net income at Cisco fell in the quarter, to $724 million, or 10 cents a share, from $991 million, or 14 cents a share, a year earlier. But excluding an accounting change related to its acquisition of Andiamo Systems, the company said net income was $1.3 billion, or 18 cents a share, surpassing analysts' forecasts by a penny a share.

The market's reaction, however, was not enthusiastic. In regular-session trading before the earnings announcement, Cisco's shares gained 21 cents, to $26.41. But after hours, the shares fell $1.13, or 4.3 percent, to $25.28, suggesting that some investors were disappointed Cisco executives did not express greater optimism about the recovery in technology sales. "There was no upside to expectations," said Eric Suppiger, an analyst with Pacific Growth Equities. "The stock has shown some pretty sharp increases lately that reflect expectations beyond what the numbers show."