Cisco yesterday posted profits of $606 million on sales of $2.83 billion for its second quarter of fiscal 1999. That compares to profits of $457 million and revenues of $2.02 billion for the same period last year, increases of 33 per cent and 40 per cent, respectively. The Q2 99 profit quoted by Cisco excludes the write-off of purchased in-process R&D arising out of the company's acquisition of Summa Four, Clarity Wireless, Selsius Systems and Pipelinks. That write-off amounts to $349 million, bringing the final profit figure down to $257 million. Those purchases are part of Cisco's ongoing acquisition strategy to help it expands into a wide range of Internet-related business activities. Indeed, Cisco president and CEO John Chambers said last year that 1999 would see up to 15 acquisitions. Speaking at the announcement of the results, Chambers said the world was moving into the "third phase of the Internet revolution" in which "consumers will be the driving force". That suggests Cisco's future acquisitions will predominantly be businesses focussing on that arena. ®