Silicon Valley giant Cisco Systems Inc., (CSCO) Wednesday said its first-quarter profit dropped as revenues declined 3 percent. Cisco's adjusted profit topped Wall Street expectations as did revenues.
However, Cisco's shares fell 4 percent in after-hours trading, after the company projected revenue and profit for the second quarter below analyst's current estimates.
The San Jose, California-based networking-equipment maker's first-quarter profit dropped to $2.32 billion or $0.46 per share from $2.43 billion or $0.48 per share last year.
Adjusted earnings for the quarter were $0.61 per share, compared to $0.59 per share last year. Analysts polled by Thomson Reuters estimated earnings of $0.59 per share for the quarter.
Revenues for the quarter decreased to $12.35 from $12.68 billion last year. Analysts had a consensus revenue estimate of $12.33 billion for the quarter.
"We had a good quarter despite a challenging global business environment and we performed well in our priority areas," said Chuck Robbins, CEO, Cisco. "We are leading our customers in their digital transition by providing them with highly secure, automated, and intelligent solutions in the ways they want to consume them. Our innovation pipeline is robust and we are well positioned for the future."
For the second quarter, Cisco expects adjusted earnings of $0.55 to $0.57 per share with revenues declined 2 to 4 percent. Analysts currently expect earnings of $0.59 per share, with revenue growth of 1.90 percent.
CSCO closed Wednesday's trading at $31.57, down $0.13 or 0.41%, on the Nasdaq. The stock further dropped $1.32 or 4.18% in after-hours trading.
by RTTNews Staff Writer
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