Feeds

Cisco's solid Q1 gains leave investors unmoved

Sitting pretty on $17 billion cash

  • alert
  • submit to reddit

Boost IT visibility and business value

Despite pulling in a healthy $6.0bn in revenue, Cisco Systems didn't do enough during its first quarter to please investors.

Cisco's first quarter results came in just as analysts had expected with the company posting earnings per share of $0.21. Ciscos' gains came on the back of the 17 per cent year-over-year rise in revenue from last year's $5.1bn and net income of $1.4bn - a 29 per cent rise over the $1.1bn reported one year earlier. Investors pushed Cisco shares slightly lower in the after-hours markets, as they digested the performance news.

Cisco is always seen as the major networking bellwether and often as an indicator for the IT market as a whole. Many analysts and investors had been hoping, as they are wont to do, that Cisco would deliver a glowing message about the technology sector's prospects in the coming months. Not so. Cisco is looking for second quarter sales to come in just 1 per cent to 3 per cent higher than the first quarter sales. Analysts were looking for at least a 3 per cent hike on average.

During the first quarter, Cisco took a number of steps to boost its bottom line. The company stashed away $1.5bn in cash. Cisco now has $17.7bn in cash and investments.

What's the company doing with this money? Well, Cisco repurchased $3 billion worth of shares during the first quarter. In addition, Cisco acquired Actona Technologies ($90m), dynamicsoft ($69m), Parch Technologies ($14m), P-Cube ($213m) and Procket Networks ($92m), during the period. ®

Related stories

Cisco rethinks 802.16
Cisco adds scrambler to IP telephony
Cisco buys 'network bouncer' firm Perfigo

Maximizing your infrastructure through virtualization

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.