Sales dropped half a percent from the previous quarter, and a $228 million expenses for stock options helped push down net income for Cisco System’s quarterly earnings.

Cisco (Nasdaq: CSCO) reported sales of $6.5 billion, down from $6.6 billion the previous quarter but up 9.7 percent from the same quarter in 2004.

The first-time charge for stock options as required by recent changes in accounting rules pushed net income down to $1.3 billion, or 20 cents a share. That’s down from $1.6 billion for the same quarter a year ago. The stock option charge reduced earnings by 4 cents.