Next-generation Web 2.0 technologies will be central to continuing growth says network provider Cisco Systems after another set of profitable results.

The firm increased fourth quarter sales by 18 per cent to $9.4bn (£4.6bn) and full year revenues by more than 22 per cent to $34.9bn (£ 17.2bn).

Profits are also up 25 per cent for the quarter to $1.9bn (£ 938m) and 31 per cent for the year to $7.3bn (£3.6bn).

‘Cisco delivered another record quarter based on a balanced approach across products, services, geographies and customer segments,’ said chief executive John Chambers.

But attention over the next financial year will turn to a new era in networking based on the ‘second phase of the internet ’, he said.

‘We expect that this phase will be driven by collaboration and Web 2.0 technologies and will become an increasingly influential market trend for businesses,’ Chambers said.

‘Collaboration has already transformed almost every area of our business internally, resulting in the potential for dramatic gains in productivity and efficiency.’

Cisco completed the acquisitions of WebEx Communications, IronPort Systems and BroadWare Technologies during the year. The firm also announced it will invest $150m (£74m) in virtualisation specialists VMWare.