Cisco reports solid earnings but choppy outlook

Cisco reports solid earnings but choppy outlook

Summary: The company has delivered solid financial results for its first quarter, but has expressed concerns about how public-sector spending cuts may impact on its outlook

SHARE:
TOPICS: Tech Industry
0

Cisco delivered solid first-quarter earnings this week, while citing concerns about how government cutbacks will affect its business.

Read this

Orange, Cisco, EMC and VMware form cloud alliance

A quartet of companies have formed the Flexible 4 Business cloud alliance to provide four varieties of pay-per-use cloud products, with Orange Business Services acting as the service provider

Read more+

The company reported first-quarter net income of $1.9bn (£1.18bn), or 34 cents a share. First-quarter revenue was $10.75bn, up 19.2 percent from a year ago. Wall Street analysts were expecting earnings of 40 cents a share on revenue of $10.74bn. In a statement, Cisco's chief executive John Chambers said he was pleased with the company's "solid financial results, during a challenging economic environment".

However, in a call with analysts, Chambers was clear about the "challenges" that the company is facing, notably government spending, service providers and the European market. Globally, orders in the public-sector segment were up six percent and growth in US federal government spending and emerging markets was "solid". Orders from US state governments, however, were down about 25 percent. Likewise, European governments have seen their budgets "reduced dramtically".

For more on this ZDNet UK-selected story, see Cisco earnings: Challenges multiply, outlook disappoints on ZDNet.com.

Topic: Tech Industry

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

0 comments
Log in or register to start the discussion