Cisco’s quarterly results beat analysts’ estimates
Cisco Systems’ recent reporting of its fiscal first-quarter results revealed that the company’s earnings - stock compensation and other nonstandard accounting practices excluded – were 43 cents per share; marking a 2 percent rise year-on-year. The revenue of the company witnessed a 5 percent increase to $11.3 billion.
The quarterly net income posted by Cisco beat the estimates of Thomson Reuters-surveyed analysts, who had projected that the figures would be around 39 cents per share, with the revenue being $11 billion, for the quarter that ended October 31.
It was largely because of a resilient demand from government and enterprises for its network equipment, notwithstanding the global economic crisis, Cisco forecast revenue and earnings above Wall Street expectations.
Almost on the lines of the estimated growth figures for the networking industry as a whole, Cisco CEO John Chambers predicted revenue growth of between 7 and 8 percent for the complete year.
Stating that Cisco has to earn its right to grow at a faster pace than the industry, Chambers said: “We are trying to get the basic foundations in place before we take the next step.”
Noting that Cisco was specifically keen on taking on new entrants, Chambers said that companies like Huawei in China were the ones that will be Cisco’s “toughest competitors” in the next 4-5 years.
