Cisco Systems 2Q Revenue Falls, Expects Return to Growth in 3Q

By Maria Armental

Cisco Systems Inc. expects revenue to return to growth this quarter following a string of declines as businesses cut back on hardware networking equipment during the coronavirus pandemic.

Cisco, considered a proxy for corporate high-tech hardware demand, this quarter expects a profit of 64 cents to 69 cents a share, or 80 cents to 82 cents as adjusted, with revenue increasing 3.5% to 5.5% from the year earlier.

"We are seeing encouraging signs of strength across our business showing how our technology will be a powerful engine for recovery and growth," Chief Executive Chuck Robbins said in a statement.

Cisco's second-quarter profit fell to $2.55 billion from $2.88 billion. On a per-share basis, profit was 60 cents a share, at the top end of the company's forecast, or 79 cents a share excluding restructuring costs and other items.

Revenue fell to $11.96 billion from $12.01 billion a year earlier.

Cisco had projected 55 cents to 60 cents a share, or 74 cents to 76 cents a share on an adjusted basis, with revenue flat to down 2% from the year earlier, while analysts expected an adjusted profit of 76 cents a share on about $11.93 billion in revenue.

Cisco recorded about $232 million in charges before taxes tied to the restructuring in the second quarter and estimated about $60 million more in the third quarter.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

February 09, 2021 16:35 ET (21:35 GMT)

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