Cisco Projects Revenue Decline in 2Q -- Earnings Review

   By Maria Armental

Networking-equipment giant Cisco Systems Inc., considered a proxy for corporate high-tech hardware demand, reported first-quarter results on Wednesday. Here's what you need to know:

PROFIT: Net income fell 18% to $2.93 billion, or 68 cents a share. On an adjusted basis, profit rose to 84 cents a share from 75 cents a share a year earlier. Cisco forecast 64 cents to 69 cents a share, or 80 cents to 82 cents a share as adjusted. Analysts surveyed by FactSet projected 69 cents a share, or 81 cents a share as adjusted.

REVENUE: Total revenue rose 0.7% to $13.16 billion. Cisco had projected revenue to remain roughly flat from the year-ago or increase up to 2%.

OUTLOOK: This quarter, Cisco expects to make 61 cents to 67 cents a share, or 75 cents to 77 cents a share on an adjusted basis, and revenue to fall 3% to 5%. Analysts expect profit of 68 cents a share, or 79 cents a share on an adjusted basis, with revenue increasing about 2.4% to $12.75 billion.

ACACIA: Cisco said it expected to wrap up during the second half of the current business year the acquisition of Acacia Communications Inc. The deal still requires approval in China.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

November 13, 2019 16:26 ET (21:26 GMT)

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