Profits at Cisco, the world's largest maker of networking equipment, have jumped by 44% on the same period a year ago as spending on technology picks up.
The company, seen as an indicator for the technology sector in general, made $3.1bn (£1.99bn) in the three months to the end of January.
The figure included tax credits and benefits of almost $1bn.
Cisco sells routers, switches, software and services. Buyers are both firms and governments around the world.
Cisco's chief executive John Chambers said that although economic conditions were challenging, demand for his company's products was strong.
He said in a statement: "Cisco delivered record earnings per share this quarter and record revenue for the eighth quarter in a row in a challenging economic environment"
Last year the company began a restructuring programme with the aim of cutting expenses by about $1bn.
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