Cisco earnings story updated with after-hours share price movement and comments from executives.
The networking giant brought in revenue of $10.4 billion and earned 37 cents a share, compared to $9.8 billion and 40 cents a share in the same period last year. Analysts surveyed by Thomson Reuters had forecast sales of $10.24 billion and earnings of 35 cents a share.
|Cisco announces its second-quarter results next week|
Yet despite the sales and EPS beat, Cisco posted a gross margin that missed analysts estimates. It came in at 62.4%, below the 63.3% analysts wanted to see.The company also guided lower, forecasting 6% year over year growth for the fiscal third quarter, under the 8% called for by analysts. "The quarter played out as we expected," said CEO John Chambers, in a statement. "As a company, we are going through a period of transition as we move aggressively in the market with our architectural strategy. We have managed these market transitions many times, positioning Cisco and our customers for success." Cisco struggled last quarter with the infamous "air pockets" in public sector spending during its first-quarter results, and also wrestled with weakness in its cable set-top boxes. During the company's conference call, Chambers once again said he's worried about public sector spending; those comments plus the lower-than-expected guidance were pushing shares down more than 8% in after-hours trading to $20.16. --Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: firstname.lastname@example.org.