Cisco Systems’ first quarter results fell short of analysts’ expectations. The network equipment maker reported first quarter net sales of $10.75 billion and net income of $1.9 billion or $0.34 per share. That's up eight percent from $1.8 billion, or 30 cents per share, a year ago. Revenue rose 19 percent to $10.75 billion, just above the average forecast of $10.74 billion.

However, analysts expected 40 cents, according to Thomson Reuters. And Cisco’s $10.75 billion revenue was still lower than the $10.95 billion analysts had predicted for the quarter.

"Cisco delivered solid financial results, during a challenging economic environment. While we have seen capital spending moderate in some areas of our business, our execution in the areas we can control and influence speak to the success and relevance of the company's strategy," said John Chambers, chairman and CEO of Cisco, in a statement. "Our position in the market, including continued product innovation, market share momentum and operational excellence, positions us for growth and flexibility well into the future as we strengthen our role as a trusted business partner to our customers."

Back in September, at the company’s annual Financial Analyst Conference 2010 webcast from its San Jose headquarters, Chambers announced plans to initiate a dividend of one percent to two percent in fiscal year 2011.

The announcement fell on the heels of news that Chambers’ pay doubled in the latest fiscal year. Due largely to increases in his stock and option awards and cash bonus, Chambers received compensation valued at $18.9 million in fiscal 2010, according to documents filed with the U.S. Securities and Exchange Commission. His total package is up 33 percent from 2009, when he received compensation valued at $14.2 million.

Nor has Cisco stopped spending. In September, the company revealed plans to purchase privately held Arch Rock Corp., a pioneer in Internet Protocol-based wireless network technology for smart-grid applications. According to Cisco, the acquisition will enable the company to offer a comprehensive and highly secure advanced metering infrastructure solution that is fully IP and open-standards based.