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Wednesday, November 04, 2009

Cisco 1Q Results Beat Street

By Kathryn Glass

FOXBusiness

Networking gear-maker Cisco Systems (CSCO) said profits fell in the first-quarter, but the company beat Wall Street’s expectations.

The company saw profit slide 19% to $1.8 billion or 30 cents per share, down from $2.2 billion or 37 cents pre share during the first quarter of last year. Revenue fell 13% to $9 billion, compared to revenue of $10.3 billion a year ago.

Non-GAAP earnings came to $2.1 billion or 36 cents per share, down from the year-ago period, which saw adjusted profit of $2.5 billion or 42 cents per share. Analysts were expecting the company to earn 31 cents a share on revenue of $8.75 billion, according to a poll by Thomson Reuters.

Commenting on the quarter, Chairman and Chief Executive Officer John Chambers said the company saw a “clear tipping point in Q4,” that lead to strong sequential growth that met or exceeded expectations for a normal economic climate.

"We view the improving economic outlook, combined with solid execution on our growth strategy, as creating unparalleled opportunity to drive more value into the core of the network,” Chambers. “Simply said, we believe that key market transitions across collaboration, virtualization and video will drive productivity and growth in network loads for the next decade, and are evolving even faster than expected."

Shares of Cisco Systems rose 66 cents or 2.84% in after-hours trading after gaining 31 cents or 1.35% to close at $23.22 on Wednesday.

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