NEW YORK (TheStreet) --Cisco Systems (CSCO) - Get Report reported stronger than expected earnings and revenue for the fiscal 2017 first quarter, however, offered lower guidance for the current quarter.

Cisco reported earnings of 61 cents per share, beating analysts' expectations of 59 cents. Revenue came in at $12.4 billion, topping expectations of $12.33 billion. Despite the bottom and top line beat Cisco cut its revenue and earnings guidance for the second quarter.

Cisco expects revenue to decline 2% to 4%, compared to last year's second quarter. Wall Street was expecting an increase of 2%. Moreover, Cisco forecast earnings between 55 cents and 57 cents, below projections of 59 cents.

"All big IT companies are going through a transition. Transitioning to the cloud, big, data and IOT. There is no doubt they're making the transition," Drexel Hamilton global head of technology hardware and software Brian White said on CNBC's "Squawk Box" this morning.

Cisco's transition, however, may be getting held back by its communication service provider orders. "Service provider spending was weaker than they thought," White added.

Cisco saw a 12% decline in its communications-service provider orders. "To be down 12% year-over-year is a pretty sharp decline,' White noted.

Foreign exchange and certain areas of the company's portfolio not well-positioned, attributed to the weakness in the service provider business, he added.

All that said, White still considers Cisco to be a core tech holding, and an "attractive" play in the space.

"This is not a company that I think has a meaningful downside; it doesn't have huge upside, but should be a core holding. You got the nice dividend yield; it's cheap and they dominate the market they're in and expanding in the new markets," he explained.

Shares of Cisco were declining by 5.56% to $29.82 on Thursday morning.

(Cisco is held in Jim Cramer's charitable trust portfolio Action Alerts PLUS. See all of Cramer's holdings with a free trial).

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings team rates Cisco as a Buy with a ratings score of A-. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that the team rates.

You can view the full analysis from the report here: CSCO

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