Cisco -- which makes the routers, switches and access devices that guide data traffic over the Internet -- has topped analysts' consensus estimates on earnings per share by one cent for three years and counting.

The company's revenue in the fiscal first quarter rose 66 percent to $6.52 billion from $3.92 billion. Analysts had estimated that Cisco would report revenue between $6.3 billion and $6.5 billion.

In an interview on CNNfn's Moneyline News Hour Monday evening, John Chambers, Cisco's president and chief executive said the company has been seeing good balance in all geographies outside the U.S. but sales to competitive local exchange carriers, or CLECs, in the United States were sluggish. [184K WAV or 184K AIFF]

Cisco's stock price has declined since April, due in large part to analysts' concerns about telephone companies' spending on networking equipment. Chambers said that Cisco does face capital spending challenges from CLECs. However, he said he anticipates spending on equipment for data transmission will continue to grow rapidly, canceling out decreases in spending on equipment for voice transmission.

Turnstone Systems (TSTN: Research, Estimates), a maker of telecommunications equipment for digital subscriber line service, plunged Monday, after the company lowered its revenue estimate for the quarter ending Dec. 31 because of  "increased weakness among its competitive local exchange carrier customers and recent changes to their capital spending plans." Turnstone dropped $19.12 to $10.37, making it the largest percentage decliner on Nasdaq.

Lucent Technologies (LU: Research, Estimates), one of Cisco's competitors, has been battered this year because of its exposure to the older, circuit-switched networking market. In addition, Lucent has had to increase its reserves for bad debt on credit it extended to struggling competitive local exchange carriers. The company also has had to lower its revenue and earnings guidance. Nortel Networks (NT: Research, Estimates), another competitor, has run into similar snags with its business. Both blamed slower sales of optical networking equipment for the shortfalls.

But Cisco's outlook for the rest of the fiscal year is far more bullish. In a teleconference with analysts after Monday's earnings release, Larry Carter, the company's chief financial officer, said sales in fiscal 2001 are expected to rise 50-to-60 percent over 2000. Sales in the current quarter are expected to rise in the "high single digits to low double digits" from the $6.52 billion Cisco reported in the most recent quarter, Carter said.

In optical networking, Cisco said it hopes to sell $3 billion-to-$7 billion worth of equipment for this calendar year.

Chambers said he "could not be more pleased" with Cisco's first-quarter results and reiterated his belief that Cisco will continue to grow its sales by 30-to-50 percent in healthy economies.

Cisco's gross margin declined to 63.5 percent of sales in the first quarter from 64.6 percent in the same period last year because of changes in its product mix and supply constraints. Operating income declined to 25.5 percent of revenue from 27 percent.

Cisco ended its fiscal first quarter with about $19.6 billion of cash and investments, down from $20.5 billion at the end of last year's first quarter. However, the company continues to generate about $500 million in cash flow each month, said Chief Financial Officer Larry Carter.

Cisco's stock closed Monday down $1.62 at $55.12. It slipped an additional 75 cents to $54.38 in after-hours trading.