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: CBS 3Q profit grows, matches Wall St. expectations

5 /5 (1 vote)
add to favorites email to friend print save as pdf

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

Out-of-patience investors sell off Amazon

20 hours ago

Amazon has long acted like an ideal customer on its own website: a freewheeling big spender with no worries about balancing a checkbook. Investors confident in founder and CEO Jeff Bezos' invest-and-expand ...

States ascend into the cloud

Oct 24, 2014

Seven years ago, the state of Delaware started moving computer servers out of closets and from under workers' desks to create a consolidated data center and a virtual computing climate.

Microsoft drops Nokia name from smartphones

Oct 24, 2014

Microsoft said Friday it was dropping the Nokia name from its Lumia smartphones, rebranding following the acquisition earlier this year of the Finnish group's handset division.

Amazon's loss makes holidays a question mark

Oct 24, 2014

Amazon's trademark smile icon is becoming more of a grimace. The world's largest online retailer reported a wider third-quarter loss than analysts expected and gave a disappointing holiday forecast.

User comments : 0