NEW YORK (TheStreet) --Cisco Systems (CSCO) reported stronger than expected earnings and revenue for the fiscal 2017 first quarter, however, offered lower guidance for the current quarter, after the market close on Wednesday.
Cisco cut its revenue and earnings guidance for the fiscal 2017 second quarter. Consequently, the stock is down 6% Thursday morning.
Cisco expects revenue to decline 2% to 4% when compared to the year-ago quarter. Wall Street was expecting an increase of 2%. Additionally, Cisco is forecasting earnings between 55 cents and 57 cents, below analysts' projections of 59 cents.
"We called out this general weakness that we saw in some of our general service providers," Cisco CEO Chuck Robbins told TheStreet's Jim Cramer on CNBC's "Squawk on the Street" this morning.
A 12% order decline in its communications-service provider business was the "primary driver for the guide," Robbins noted.
Despite the steep decline, Robbins contended the weak results are not indicative of market share loss.
"We've got some consolidation that's occurring and you can assume that we have visibility on an account-by-account basis and I can tell you, I am not concerned about losses," he stated.
Positives in Cisco's quarter, the company's global enterprise business is up 5%. Additionally, deferred revenue from both its subscription and SAS businesses rose 48%.
"There were a lot of areas for us to be very excited about," Robbins said.
Looking ahead, one potential benefit on Cisco's horizon is the possibility of lower repatriation rates under a Donald Trump presidency.