Cisco Earnings - Is Cisco In Trouble? We’ll Be Following This Story
Silicon Alley Insider has the details from the Cisco earnings call. Thanks Dan Frommer.
Cisco (CSCO) was the first company to sound the alarms about the recession. So what do they have to say now?
Things aren’t getting better
, and CEO John Chambers says October was especially terrible — a 9% year-over-year drop in orders.
Cisco expects Q2 revenues to shrink 5% to 10% year-over-year. It’s also aiming for $1 billion in cost savings via a six-part plan that includes a hiring “pause,” reduced travel, events, prototyping, etc.
Specifically, Cisco’s guidance suggests Q2 sales of $8.85 billion to $9.34 billion, way below analysts’ expectations of $10.4 billion.
Meanwhile, Cisco’s Q1 sales were in line with expectations and EPS beat the Street by 3 cents. Shares are up 1.3% after hours to $17.61, according to Google.
Key Stats:
Q1 Revenue: $10.3 billion vs. $10.3 billion consensus
Q1 EPS: $0.42 vs. $0.39 consensus
Q2 Revenue Guidance: $8.85 billion to $9.34 billion vs. $10.41 billion consensus
[...] leave. Apple is supposedly scaling back its Iphone production. John Furrier earlier reported on Cisco’s earnings problems. Many mid-size companies have discovered placing their infrastructures in managed hosting [...]
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