Cisco Systems Inc's
The world's largest networking equipment maker reported sales of $11.2 billion in the fiscal fourth quarter, surpassing expectations for under $11 billion.
Cisco has warned since last year that government spending cuts would include network equipment, and a deal last week to reduce the U.S. federal budget deficit could hurt the San Jose, California company's business more.
Investor sentiment also worsened after rivals Juniper Networks
Cisco, which depends on government spending for about a fifth of its revenue, said in July it would cut 15 percent of its workforce and sell a set-top box factory in Mexico as part of an effort to slash annual expenses by $1 billion.
Analysts on average expected fourth-quarter revenue of $10.969 billion, according to Thomson Reuters I/B/E/S.
Shares of Cisco rose to $14 in extended trade after closing down 2.3 percent on Nasdaq.
(Reporting by Noel Randewich and Alexei Oreskovic; Editing by Richard Chang)