Cisco Sales Fall For Sixth Straight Quarter; Revenue Outlook Misses – Investor's Business Daily

This post was originally published on this site

XAutoplay: On | Off Dow component Cisco Systems (CSCO) late Wednesday reported that fiscal third-quarter profit edged views, but current-quarter revenue guidance fell short of expectations, sending shares down in late trading.

Cisco’s year-over-year sales fell for the sixth straight quarter. Sales to telecom service providers fell again in the April quarter, this time 30%, to $207 million. Some of Cisco’s revenue decline stems from the company’s sale of its set-top-box business in 2016.

Cisco has been shifting to software and services from its core business of selling network switches and routers. Cisco in January said it would acquire software provider AppDynamics for $3.7 billion.

Cisco said adjusted fiscal third-quarter earnings were 60 cents a share vs. 57 cents a year ago, with revenue falling 1% to $11.94 billion for the period ended April 29. Analysts expected the company to report earnings of 58 cents on sales of $11.9 billion.

In the current quarter, Cisco said it expects profit of 61 cents and a revenue drop of 5% to roughly $12 billion. Analysts had modeled profit of 62 cents vs. 63 cents a year earlier and revenue of $12.51 billion.

Shares in the computer networking giant fell 4.7% to 32.22 in after-hours trading on the stock market today.

This post was originally published on *this site*