Cisco profit soars but misses forecasts

Robert Clark
12 Aug 2010
00:00
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Daily News

Cisco’s stock plunged nearly 8% in after-hours trading despite boosting quarterly income by 79% year-on-year.

However, the networking giant missed its revenue estimate for the quarter and its Nasdaq stock fell 7.92% to $21.85.

The company announced a $1.9 billion profit, up from $1.1 billion a year ago, on 27% higher sales of $10.8 billion.

However, Wall Street had expected revenue of above $10.9 billion and the stock was marked down in the general sell-off over fears of a weakening US economy.

CEO John Chambers said: “Whether the global economy continues to show mixed signals or not—the strength of our financial model and profit generation serves us well.

He said in a conference call the company was faced with “a large number of mixed signals.

“We think the words ‘unusual uncertainty’ are an accurate description of what’s occurring.”

The company expects revenue in the current quarter to increased 18%-20% from the same period a year earlier, or between $10.65-$10.83 billion – below the average analyst expectations of $10.95 billion.

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