Internet equipment maker Cisco Systems posted strong results in its first quarter results released Wednesday but still expects weakness in coming quarters.
Excluding one-time items, the U.S. firm posted a profit of 14 cents per share, compared to four cents per share in last year's Q1 and a penny better than the consensus analyst estimate (all figures in U.S. dollars).
Revenues rose nine per cent to $4.8 billion from $4.4 billion a year ago but was flat with the previous quarter.
The company, the largest supplier of corporate network and Internet equipment, warned that it expects revenues to be flat or down in the current quarter.
CFO Larry Carter said in a conference call with analysts that the company expects second-quarter revenue to be "sequentially flat to down three to four per cent" from the first quarter's $4.8 billion.
Gross profit margin is targeted at 66 to 68 per cent in the second quarter, while operating expenses will decline "slightly" from the first quarter.
Most analysts had expected Cisco's revenue to rise slightly in the second quarter, according to Thomson First Call.
Historically, Cisco's fiscal second-quarter is seasonally stronger than its other quarters.
CEO John Chambers said spending by telecom service providers is likely to continue to decline.
Excluding one-time items, the U.S. firm posted a profit of 14 cents per share, compared to four cents per share in last year's Q1 and a penny better than the consensus analyst estimate (all figures in U.S. dollars).
Revenues rose nine per cent to $4.8 billion from $4.4 billion a year ago but was flat with the previous quarter.
The company, the largest supplier of corporate network and Internet equipment, warned that it expects revenues to be flat or down in the current quarter.
CFO Larry Carter said in a conference call with analysts that the company expects second-quarter revenue to be "sequentially flat to down three to four per cent" from the first quarter's $4.8 billion.
Gross profit margin is targeted at 66 to 68 per cent in the second quarter, while operating expenses will decline "slightly" from the first quarter.
Most analysts had expected Cisco's revenue to rise slightly in the second quarter, according to Thomson First Call.
Historically, Cisco's fiscal second-quarter is seasonally stronger than its other quarters.
CEO John Chambers said spending by telecom service providers is likely to continue to decline.
