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: Texas Instruments 3Q profit drops, outlook weak

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

What's PayPal's first solo move?

3 hours ago

PayPal's impending split from long-time partner eBay Inc. will ratchet up its appeal to online retail competitors such as Amazon.com and give it the freedom to aggressively take on new mobile pay challeng ...

AOL to feed more video, news to Microsoft's MSN

8 hours ago

AOL will provide Microsoft's MSN with more video and additional news stories from popular sites such as The Huffington Post and TechCrunch in an expansion of a deal aimed at selling more digital advertising.

Microsoft to tap $2-trillion Indian cloud market

12 hours ago

Microsoft announced plans Tuesday to offer its commercial cloud services from Indian data centres as it seeks to tap what it calls a $2-trillion market in the country where Internet use is growing rapidly.

User comments : 0