* Q1 revenue up 6 pct at $11.9 bln vs Street view of $11.77
* EPS of 48 cents vs Street view of 46 cents
* Shares up 6.7 pct at $17.98 after hours
Nov 13 Cisco Systems Inc reported first
quarter results that beat estimates but expects flat earnings
and slower revenue growth for the current quarter.
"We are modeling Europe to get worse before it gets better,"
Chief Executive John Chambers said on Tuesday, echoing his
comments from the company's fourth-quarter earnings call in
However, he added that "we see signs of improvement in the
U.S. in enterprise, service provider and commercial."
Still, Chamber said, it was too early to speak of a trend
"though we are continuing to see what we like."
Cisco said it expects earnings per share, excluding items,
of 47 cents to 48 cents in its fiscal second quarter, which runs
until the end of January. A year earlier it reported EPS of 47
It also said it sees revenue growth in a range of 3.5
percent to 5.5 percent, compared with 11.6 percent growth in the
second quarter of 2012.
Chambers said he would give a long-term outlook at the
company's financial analyst day next month.
Analysts had been expecting a cautious outlook.
"Considering the sluggish macro environment it's good that
they are expecting growth at all," said ZK Research analyst Zeus
He added that Cisco has been "pretty accurate" at predicting
In its first quarter, which ran until the end of October,
Cisco surprised analysts with a solid beat, due to cost cuts and
the company's broad product range.
First-quarter net income, excluding items, rose 10.6 percent
to $2.6 billion, or 48 cents per share, compared with analysts'
average estimate of 46 cents a share as compiled by Thomson
Revenue rose 6 percent from the year-ago quarter to $11.9
billion, compared with a Street view of $11.77 billion.
Cisco's shares rose 6.7 percent to $17.98 in after-hours
Analysts applauded the company's cost discipline and
welcomed solid results in a tough environment.
"Given concern about enterprise spending, the company seems
to be bucking the trends," said Bill Kreher, senior technology
analyst at Edward Jones.
"The bar was low but the company did exceed those
expectations. The company appears to be using strong cost
discipline in meeting their numbers."
Mizuho Securities analyst Joanna Makris said "at first blush
these are good numbers in a bad macro (environment)."
"It's largely due to a product mix - a larger shift to
routing - and cost cutting," adding that "this is better than
expected. We have been thinking they would squeak by on the top