Cisco's 1Q revenue falls below estimates

Nov 13, 2013 by Barbara Ortutay
This Wednesday, May 9. 2012, file photo, shows an exterior view of Cisco headquarters in Santa Clara, Calif. Cisco Systems Inc., reports quarterly eanrings on Wednesday, Nov. 13, 2013. (AP Photo/Paul Sakuma, File)

Cisco's fiscal first-quarter revenue grew slower than expected and net income declined, which sent the technology company's stock lower in extended trading.

Cisco Systems Inc. said Wednesday that it earned $2 billion, or 37 cents per share, during the quarter ended Oct. 26. That's down 5 percent from $2.09 billion, or 39 cents per share, a year earlier.

Revenue grew 2 percent to $12.09 billion from $11.88 billion.

Adjusted earnings, which exclude acquisition-related costs, stock-based compensation expense and other items, totaled $2.9 billion, or 53 cents per share—2 cents above Wall Street's expectations.

Analysts expected higher revenue of $12.35 billion, according to a poll by FactSet.

Cisco also expanded its share repurchase program by $15 billion, bringing the total authorization for buybacks to $16.1 billion.

"While our was below our expectation, our financials are strong, our strategy is strong and our innovation engine is executing extremely well," said CEO John Chambers in a statement.

Cisco's performance is widely regarded as a bellwether for the technology industry because company cuts a broad swath, selling routers, switches, software and services to corporate customers and government agencies, and it reports earnings outside of the regular calendar year.

Shares of San Jose, California-based Cisco fell 87 cents, or 3.6 percent, to $23.13 in after-hours trading. The stock had closed regular trading up 27 cents at $24.

Explore further: Germany still has some way to go to 'smart factories'

Related Stories

Texas Instruments 3Q profit drops, outlook weak

Oct 21, 2013

Chipmaker Texas Instruments Inc. said Monday that its net income fell 20 percent in the third quarter. Its outlook for the current period was worse than analysts expected, and shares slipped.

EBay CEO cites 'uncertainty' for weak 4Q outlook

Oct 17, 2013

EBay said the growth rate of e-commerce in the United States is slowing as it delivered a weaker than expected profit and revenue outlook for the current quarter through December. The company's third-quarter earnings edged ...

Recommended for you

Germany still has some way to go to 'smart factories'

12 hours ago

Collaborative robots and intelligent machinery may have wowed the crowds at this year's Hannover Messe, but experts see German industry as having some way to go towards incorporating them on factory floors ...

Taiwan factory workers win $18 mn over cancer deaths

Apr 17, 2015

Workers from a factory in Taiwan which leeched toxic chemicals they say resulted in 200 deaths from cancer and more than 1,000 other cases of the disease won a Tw$564.45 million ($18 million) payout from US electronics company ...

Court monitor: Apple antitrust cooperation has 'declined'

Apr 17, 2015

Apple Inc.'s cooperation with efforts to improve its compliance with antitrust laws after a federal judge concluded it colluded with electronic book publishers to raise prices five years ago took on an "adversarial tone" ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.