Networking leader Cisco has beaten analysts’ estimates with a 23% higher quarterly profit, with improved performance in virtually all segments.

It posted Q4 net income of $1.9 billion, or 32 cents a share, up from $1.5 billion, or 26 cents a share, in the same period last year. Sales were up 8.0% to $9.8 billion.

A Thomson Reuters survey of analysts had predicted that Cisco would earn 35 cents a share on sales of $9.41 billion, the New York Times said.

If charges for stock-option compensation and other one-time charges were excluded, net income was 40 cents a share.

Cash flow improved sequentially from $1.5 billion to $2.5 billion, although a year earlier it was $3.2 billion.

CEO John Chambers said the result showed the company had entered “the second phase of the economic recovery.”

“During the quarter we saw dramatic across the board acceleration and sequential improvement in our business in almost all areas,” he said.

During the quarter Cisco broadened its carrier product portfolio with the key acquisition of Starent Networks, a supplier of IP mobile infrastructure.