For the fourth quarter, Cisco projected adjusted revenue would be flat to up 3% and adjusted per-share earnings would be 59 cents to 61 cents, compared with analysts’ expectations for adjusted earnings of 58 cents a share, according to Thomson Reuters.
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“We do see a continuing amount of uncertainty out there”, he said. Wireless and Data Centre products increased by 1 percent. That compares nicely with analysts’ estimates of earnings of $0.55 per share and sales of $11.97 billion.
Overall, CEO Chuck Robbins said the company managed the quarter well “despite the challenging environment”.
“We’re in the early days of this transition, but I think we’ve proven in those businesses that we can actually make this transition, and we now have a plan underway to take that methodology across the balance of our portfolio”, Robbins said in an interview Thursday morning on “Bloomberg Go”. “Our commitment to operating discipline continues to yield solid results in spite of the challenging environment”.
Cisco’s biggest division, switching, had third-quarter sales of $3.45 billion, a decline of 3% from a year earlier. Having initially resisted the software defined networking (SDN) and network function virtualization (NFV) trends, Cisco is now rapidly embracing them.
Cisco posted revenue growth of 17 percent to $482 million in Security. In the latest quarter, switching revenue fell 3%, while revenue in the company’s routing business fell 5%. Cisco’s security business offers firewall protection along with intrusion detection and prevention systems.
The company still has a long way to go to recast itself fully, and earnings are not where they should be, Robbins said Wednesday after the earnings results were released.
Cisco’s revenue – excluding SP Video CPE business – increased 4 percent to $7,062 million in Americas, fell 2 percent to $3,001 million in EMEA, and grew 10 percent to $1,937 million in Asia Pacific Japan and China in the third quarter of fiscal 2016.
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CliQr – Provides cloud organizational platforms that “expect to help Cisco customers simplify and accelerate their… cloud deployments”. “At our partners summit we received a very strong response to our innovations as customer adopt our next generation data center solutions”.
