Cisco first-quarter revenue falls short as profit drops from last year
Cisco Systems missed its revenue forecast and logged a year-over-year profit decline in its fiscal first quarter.
The rare miss for the networking giant, considered one of the bellwethers of the technology industry, came after Cisco announced 4,000 layoffs during its last financial report in August. At that time, the company cited uneven economic conditions in some parts of the world and a streamlining of its organization.
“While our revenue growth was below our expectation, our financials are strong, our strategy is strong and our innovation engine is executing extremely well,” Chairman and CEO John Chambers said in a press release.
The company reported $12.1 billion in revenue, which fell short of the consensus of analysts polled by Thomson Financial, who had expected $12.36 billion.
Cisco earned net income of $2 billion in the quarter, down 4.6 percent from $2.1 billion a year earlier, measured according to generally accepted accounting principles. That came out to $0.37 per share, down from $0.39 per share.
Not counting certain one-time items, Cisco earned $0.53 per share, exceeding analysts’ forecast of $0.51 per share.