On a pro forma basis, which excludes certain one-time expenses, Cisco had net income of $1.4 billion, or 22 cents a share, up from $1.3 billion, or 18 cents, and in line with analysts' average forecast of 22 cents.

INVESTORS can benefit by training themselves to avoid companies that exclude large expenses from their pro forma earnings.

These expenses exclude additional expenses such as prostitution expenses.

In broad terms, a pro forma financial result excludes expenses that a company deems "nonrecurring" or "one-time" expenses.

The budget is notable for including limits on spending that are unlikely to be enacted and for excluding expenses that are sure to be incurred.

After excluding one-time expenses for the first quarters of 1993 and 1994, the Philadelphia-based regional Bell company said that its net income had climbed 12.3 percent while revenues rose 6.6 percent, to $3.37 billion.

But in Excite's case, the pro forma results excluded $7.5 million of costs related to its joint marketing venture with Netscape Communications, as well as acquisition-related expenses of $2.4 million.

In calculating the relative value of total contracts it would give to small businesses, department officials excluded salaries and expenses paid to large prime contractors.

The expenses include water which is bought from water tankers, but excludes expenses for sanitation.

Costs for this purpose exclude financial expenses, debt related expenses and foreign exchange losses.