Cisco Systems continued its solid streak for the first quarter of fiscal 2008, reporting revenues of $9.6 billion from $9.4 billion in the previous quarter. The revenue represents a 17% increase of $1.4 billion from the first quarter of last year.

The company was upbeat in reporting its seventh consecutive quarter of an increase in income. Chief Executive Officer John Chambers stressed balance across all of Cisco’s business units as being key to the company’s success, stressing strong sales of its routers, set-top boxes and other products.

Chambers echoed his sentiments from the fourth-quarter 2007 earnings call, on which the company raised its forecasts, saying that the second wave of Internet-driven growth would be driven by collaboration and Web 2.0 applications. “We believe that the network truly becomes the platform,” he said.

“Our services are not a standalone product area,” Chambers said. “Rather, they are the delivery vehicle through which we earn our customer’s trust and satisfaction by enabling their business goals.”

Cisco predicted that second-quarter revenues would be up 16%, totaling $9.79 billion, from the previous year. The company is also now saying sales could grow 12 to 17% per year in the long run.

Chambers said that Cisco is in a unique position in the industry now as it moves into the realm of leadership across the entire IP environment, including amongst service providers.

“From a U.S. perspective, the service provider segment continues to be strong,” Chambers said. “The strategic relevance of Cisco is increasing to our service provider customers.”

The news was not good enough for many investors, however, as Cisco's shares fell in early after-hours trading, down 8% to $30.12. Chambers mentioned economic conditions as a cooling factor for Cisco’s U.S. enterprise division, reiterating that the company would have to deal with circumstances outside of its control in the upcoming months.

In quick summary, Chambers said that August was about what he expected in the U.S., but not globally. September was a little more moderate, and October was solid. He remains optimistic that the company will be able to achieve its growth target for the rest of the fiscal year.