The Freeland File
Aerospace & Defense
Global Market Data
Lucy P. Marcus
The Great Debate
Macro & Markets
Lipper Awards 2012
Personal Finance Video
The household bio-reactors of the future
Researchers at the Argonne National Laboratory are developing a mobile reactor they say will one day play a crucial role in helping people after natural disasters like Hurricane Sandy. Video
Video: McAfee founder wanted by police
Startup Square battles payment giants
Clinton foundation to tackle health disparities
Civilian social ties make Tampa desirable posting for generals
Emails that touched off scandal described CIA director's movements
13 Nov 2012
Detroit faces another cash-flow crisis
13 Nov 2012
Britain condemned for "mad house" care of schizophrenia patients
13 Nov 2012
Anti-austerity strikes sweep southern Europe
After Obama win, U.S. backs new U.N. arms treaty talks
Obama plans ”fiscal cliff” statement as showdown looms
Republicans say deal can be done on ”fiscal cliff”
Cisco sees slower growth in second quarter
Kors expects more profits, sees demand strengthen
Tue, Nov 13 2012
Cisco to meet quarterly target, disappoint on outlook
Mon, Nov 12 2012
UPDATE 3-Dean Foods lifts view after earnings beat
Thu, Nov 8 2012
Tim Hortons profit up but shares fall as traffic slips
Thu, Nov 8 2012
Qualcomm revenue beats Street, shares rise
Wed, Nov 7 2012
Analysis & Opinion
AOL: Down so long, itâ€™s starting to look up
Procter & Gamble earnings give CEO McDonald some relief
Investing Simplified »
A Cisco office is pictured in San Diego, California November 12, 2012.
Credit: Reuters/Mike Blake
Tue Nov 13, 2012 6:10pm EST
(Reuters) - Cisco Systems Inc reported first quarter results that beat estimates but expects flat earnings and slower revenue growth for the current quarter.
"We are modeling Europe to get worse before it gets better," Chief Executive John Chambers said on Tuesday, echoing his comments from the company's fourth-quarter earnings call in August.
However, he added that "we see signs of improvement in the U.S. in enterprise, service provider and commercial."
Still, Chamber said, it was too early to speak of a trend "though we are continuing to see what we like."
Cisco said it expects earnings per share, excluding items, of 47 cents to 48 cents in its fiscal second quarter, which runs until the end of January. A year earlier it reported EPS of 47 cents.
It also said it sees revenue growth in a range of 3.5 percent to 5.5 percent, compared with 11.6 percent growth in the second quarter of 2012.
Chambers said he would give a long-term outlook at the company's financial analyst day next month.
In its first quarter, which ran until the end of October, Cisco surprised analysts with a solid beat, due to cost cuts and the company's broad product range.
First-quarter net income, excluding items, rose 10.6 percent to $2.6 billion, or 48 cents per share, compared with analysts' average estimate of 46 cents a share as compiled by Thomson Reuters I/B/E/S.
Revenue rose 6 percent from the year-ago quarter to $11.9 billion, compared with a Street view of $11.77 billion.
Cisco's shares rose 6.7 percent to $17.98 in after-hours trading.
Analysts applauded the company's cost discipline and welcomed solid results in a tough environment.
"Given concern about enterprise spending, the company seems to be bucking the trends," said Bill Kreher, senior technology analyst at Edward Jones.
"The bar was low but the company did exceed those expectations. The company appears to be using strong cost discipline in meeting their numbers."
Mizuho Securities analyst Joanna Makris said "at first blush these are good numbers in a bad macro (environment)."
"It's largely due to a product mix - a larger shift to routing - and cost cutting," adding that "this is better than expected. We have been thinking they would squeak by on the top line."
(Reporting by Nicola Leske; additional reporting by Liana Baker and Jennifer Saba; Editing by Phil Berlowitz)
Related Quotes and News
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Be the first to comment on reuters.com.
Add yours using the box above.
Back to top
New York Legal
Support & Contact
Connect with Reuters
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
About Thomson Reuters
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.