Cisco Systems Reports Falling Profit

Cisco Systems (NASDAQ: CSCO) announced its results for the first quarter on November 9, 2011. Let's take a closer look at the company's industry, financials, and commentary and see what steps you can take next.

Earnings and Revenue:
Cisco Systems managed to exceed Wall Street estimates with stronger-than-expected EPS and revenues. The company reported adjusted net income of 43 cents/share versus the 34 cents/share estimate and revenues of $11.26 billion versus the $11.01 billion estimate. Revenue climbed 4.7% from the same period last year.
The company has now reported lower net income fall in each of the last four quarters. Cisco Systems' revenue has grown during each of the past four quarters on a year-over-year basis.

Income:
Over the past year, Cisco Systems reported net income of $1.46/share. The company trumped analyst projections of $1.31 by 11.5%. According to the reported number, the company's income fell 7.9% from last year's levels.

Conference Call:
The conference call for first quarter earnings can be accessed here.

Official Comment:
"We delivered a solid quarter," said John Chambers, Cisco Chairman and CEO. "We've completed the majority of our restructuring and have organized Cisco to successfully execute against our strategy of providing intelligent networks, architectures and integrated products that solve customers' business problems. Even in times of limited capital spending, intelligent networks are being deployed to drive new business, revenue and consumption models, enable new customer and employee experiences, and drive efficiencies. Cisco's leadership in networking, video, collaboration and cloud, offered together in an integrated architectural approach, uniquely positions Cisco as a strategic business partner."

Industry:
With price/earnings growth of 1.6%, Cisco Systems' industry, computer networks, is expanding.

What to Do Next:
Those are the latest numbers from Cisco Systems, including how the announcement compared to Wall Street estimates. Benzinga consistently provides earnings previews and recaps for major corporate events. Be sure to visit us next quarter for a full Cisco Systems preview.

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(Estimates Source: Zacks)