Cisco has reported an eight per cent increase in its first-quarter sales, but profit has remained flat, dropping by just 0.2 per cent compared to the same period last year.

The networking specialist announced revenue of $10.3bn (£6.4bn), and net income of $2.2bn (£1.4bn), despite what chief executive John Chambers described as a “very challenging global economy”.

"Our strategy and focus for managing the business through this market transition is clear - we will manage and prioritise our resources, invest in innovation, and build even stronger relationships with our customers to help enable their success," he said.

"The essential role that the network plays in driving business productivity and competitive advantage is more relevant than ever in this current macro-economic environment.”