Reuters

(Reuters)

Cisco 3Q Earnings, Revenue Top Expectations

By Features FOXBusiness

Cisco Systems Inc. (CSCO) posted fiscal third-quarter profit that fell compared with a year ago, but the results beat expectations on Wednesday, prompting shares to edge higher after the market closed.

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Third-quarter profit slid 17.6% to $1.8 billion, or 33 cents per share, compared with year-ago earnings of $2.2 billion, or 37 cents a share. On an adjusted basis, earnings per share came in even with the year-ago quarter at 42 cents.

Revenue rose 4.8% to $10.9 billion, up from the third quarter of last year, when the company reported net sales of $10.4 billion.

The results beat expectations, as analysts polled by Thomson Reuters had predicted earnings of 37 cents on revenue of $10.85 billion.

The networking-equipment maker has said it is working to simplify its business operations; just last month, Cisco announced plans to shut down its Flip video camera business.

"This quarter played out as we expected," said John Chambers, chairman and CEO of Cisco in a statement. "We have acknowledged our challenges. We know what we have to do. We have a clear game plan, and we are a company with a track record of market-shaping innovation. We thank our shareholders, employees, customers and partners as we transition to the next phase of Cisco."

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The company also said it continued its stock buyback program, repurchasing 54 million shares at an average price of $18.39 a share in the third quarter. Cisco also completed the acquisitions of NewScale Inc, Pari Networks and Inlet Technologies during the quarter.

Shares of Cisco fell a penny in Wednesday’s session, closing at $17.78 a share. The stock rallied 67 cents, or 3.7%, following the release of the results.

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