Cisco Systems 2Q Revenue Falls, Expects Return to Growth in 3Q
10 February 2021 - 8:50AM
Dow Jones News
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 maria.armental@wsj.com
(END) Dow Jones Newswires
February 09, 2021 16:35 ET (21:35 GMT)
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