Shares of Cisco (CSCO) - Get Cisco Systems, Inc. Report rose as much as 2% in after-hours trading on Wednesday as the company posted slightly better-than-expected results for the second quarter of fiscal 2017.
After the closing bell, the San Jose, CA-based company posted adjusted earnings of 57 cents per share, beating analysts' estimates by a penny. Revenue came in at $11.58 billion, surpassing Wall Street's expected $11.55 billion.
Cisco said it expects to report adjusted earnings in the range of 57 cents and 59 cents per share for the third quarter, in line with consensus estimates are for 58 cents per share. The company projects revenue will be between flat and declining 2% year-over-year during the quarter.
But second-quarter revenue in Cisco's largest business, Switching, declined 5% year-over-year to $3.30 billion during the quarter. Analysts were looking for revenue of $3.39 billion in the unit.
Meanwhile, Cisco's products business saw $6.56 billion in revenue, helped by recurring revenue from software and subscriptions businesses.
"We delivered a solid Q2 with $11.6 billion in revenues and further growth in key business areas of collaboration, security and services," said Cisco's CFO Kelly Kramer in a statement. "I am pleased with our progress on business transformation to software and recurring revenues."
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