Reuters

(Reuters)

Cisco Posts Mixed 1Q Results, Shares Dip

By Features FOXBusiness

Cisco Systems (CSCO) offered a mixed fiscal first quarter earnings report Wednesday, beating Wall Street’s forecasts for earnings but missing on revenue.

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The computer networking giant’s shares fell more than 3% in after-hours trading to $23.25.

Cisco reported earnings of 53 cents an adjusted share on revenue of $12.1 billion. Forecasts had projected earnings of 51 cents on revenue of $12.35 billion. The numbers were up from a year ago, however, when Cisco reported earnings of 48 cents on revenue of $11.9 billion.

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

Cisco also announced it would add up to $15 billion to its stock buyback program. The company had previously announced it would buy back up to $82 billion of its common stock.

The first quarter results included pre-tax charges of $237 million related to Cisco’s announcement earlier this year that it would lay off 4,000 workers, and a pre-tax charge of $257 million related to compensation expense tied to Cisco's acquisition of the remaining interest in Insieme Networks.

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Including these charges, Cisco earned 37 cents per share last quarter.

Ahead of the report analysts had predicted Cisco’s numbers might be down, citing a loss of business due to the 16-day partial government shutdown in October. The federal government is a major client of Cisco’s networking services. But Cisco’s earnings report made no mention of the shutdown and it appears to have not been a major factor for the company.

In a conference call late Wednesday, Chambers said the shutdown had a $50 million impact on Cisco's quarterly results, according to Dow Jones Newswires.

Cisco had projected in August that its revenue would climb 3% to 5% in the first quarter. The $1.8 billion increase represented just a 1.8% increase.

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