Cisco Systems, Inc. (CSCO) kept the recent string of positive earnings surprises from big technology companies alive with better-than-expected Q2 results today after the bell.

Sales for the three months ending January 23 were up 8% from last year to $9.8 billion. Earnings also came in strong at 40 cents per share on an adjusted basis, 10 cents better than the Zacks Consensus Estimate. Cisco has been very consistent over the last year in a tough market, beating in all four quarters by an average of 16.5%.

Cisco gained in a couple of key categories during the quarter. The company’s cash flows from operations jumped to $2.5 billion from $1.5 billion last year. Cisco also continued to grow its massive treasure chest of cash, with cash and equivalents increasing $5 billion from two quarters ago to $39.6 billion.

Cisco has also remained committed to its share repurchase program, snapping up 63 million shares of common during the quarter for $1.5 billion, bringing the company’s total shares repurchased during the current campaign to 2.9 billion at a cost of $60 billion.

Cisco’s iconic CEO John Chambers was upbeat about the company’s results and the economy in general, saying, “Our outstanding results exceeded our expectations, and we believe they provide a clear indication that we are entering the second phase of the economic recovery.”

With a good quarter in hand and an optimistic view from the top, analyst are likely to begin raising their earnings projections over the next few days. As it stands, the current-year estimate is pegged at $1.26, with the next-year estimate clocking in at $1.45 – a 15% growth projection. With a forward P/E multiple of 18X, Cisco still looks reasonably valued in spite of the big gains from 2009.

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