Cisco calms fears with solid 2Q performance

Cisco Systems allayed concerns about its second quarter results with earnings that topped 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 of US$1.5 billion, or 27 cents a share, on revenue of US$10.4 billion. Non-GAAP earnings were 37 cents a share. Wall Street was expecting earnings of 35 cents a share.

As noted in a preview, analysts were expecting Cisco to rebuild its order backlog. Demand throughout the quarter looked solid. Indeed, Cisco CEO John Chambers said “the quarter played out as we expected”.

Read more of “Cisco has solid second quarter, but cuts outlook as switching products under fire” at ZDNet.