Cisco Projects Reduced Revenue in Current Quarter

By Maria Armental 

Cisco Systems Inc., the networking-equipment giant, projected the first quarterly revenue decline in more than two years, blaming what it called a pause in customer spending.

The company, considered a proxy for corporate high-tech hardware demand, expects revenue to fall 3% to 5% this quarter. Analysts polled by FactSet were expecting revenue to increase about 2.4% to $12.75 billion.

The company expects adjusted earnings between 75 cents and 77 cents a share. Analysts projected 79 cents a share.

Shares fell 5% to $46.09 in after-hours trading.

On Wednesday, Cisco reported first-quarter profit 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, meanwhile, rose 0.7% to $13.16 billion, beating analysts' projections and at the low end of Cisco's projection of flat to up 2%.

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

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

November 13, 2019 17:29 ET (22:29 GMT)

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