Cisco tops Q1 earnings targets
Cisco delivered in-line first quarter financial results Wednesday after the bell.
The tech giant reported a net income of $2.4 billion, or 48 cents per share. Non-GAAP earnings were 61 cents per share on a revenue of $12.14 billion, down 2 percent year over year. A year ago, Cisco earned 61 cents a share on sales of $12.35 billion.
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Wall Street was looking for earnings of 60 cents per share with $12.11 billion in revenue. Cisco's shares were up more than 3 percent after hours.
For the current quarter, Wall Street is looking for non-GAAP earnings of 58 cents per share with $11.7 billion in revenue. Cisco responded with a revenue outlook that ranges from a 1 percent to 3 percent increase, with EPS between 58 cents a share and 60 cents a share.
Cisco's revenue by segment looks a bit different this quarter as the company completes its shift to recurring and subscription revenue models. The company now breaks revenue down in the following categories: infrastructure platforms, applications, security, services and other.
Infrastructure platforms revenue was down 4 percent to $6.9 billion; applications revenue was up 6 percent to $1.2 billion; security revenue was up 8 percent to $585 million; and other products revenue was $296 million, down 16 percent.
Cisco CFO Kelly Kramer said the company "executed well as we focus on strategic priorities and maintaining rigorous discipline on profitability and cash generation."
"Our results in Q1 demonstrate the continued progress we're making on our strategy," said Cisco CEO Chuck Robbins. "The network has never been more critical to business success. Cisco is delivering more insights and intelligence as we help our customers build highly secure, intelligent platforms for digital business."