Cisco calms fears with solid 2Q performance

Cisco Systems allay concerns about its results for the second quarter earnings that beat expectations. But the outlook for the third quarter fell short of expectations as Cisco said it is seeing pricing pressure for its Catalyst switches.

The networking giant reported fiscal second-quarter earnings U.S. $ 1.5 billion, or 27 cents per share on revenue of U.S. $ 10.4 billion. Non-GAAP income was 37 cents per share. Wall Street was expecting earnings of 35 cents per share.

As noted in a preview, analysts had expected Cisco to rebuild its backlog. Demand throughout the quarter looked strong. In fact, Cisco CEO John Chambers, said “the quarter played as expected.”