Cisco posted revenue of $9.8bn (£5bn) in its second quarter, a healthy 16.5 per cent rise, with net profit also going up by 7.3 per cent to $2.1bn (£1.1bn).

Revenue for the first six months of financial 2008 was $19.4bn (£9.9bn), compared with $16.6bn (£8.5bn) for the same period last year. Net income was $4.3bn (£2.2bn), compared with $3.5bn (£1.8bn) for the first half of fiscal 2007.

Despite the positive results, Cisco chief executive John Chambers warned of slowing growth in the year ahead, citing global stock market conditions and a January slowdown in orders for networking and telecommunications equipment. The coming quarter was given a comparatively modest 10 per cent growth forecast.

"We are seeing our US and European customers become increasingly cautious," said Chambers in a statement.

Share value slipped by eight per cent on publication of the figures.