Tech and Science News
Cisco revenue, profit beat estimates
FILE PHOTO: A logo of Cisco is seen during the Mobile World Congress in Barcelona, Spain February 27, 2018. REUTERS/Yves Herman/File Photo
(Reuters) - Cisco Systems Inc reported quarterly revenue and profit that beat Wall Street estimates on Wednesday, lifted by growth across its traditional business of routers and switches, as well as in its newer focus areas such as cyber security and software.
The company has pivoted to software and cyber security as sales of its routers and switches that send data across computer networks come under increasing pressure from companies using more cloud infrastructure offered by third parties instead of building their own networks.
Revenue in its infrastructure platform business, which houses the switches and routers business, rose about 9 percent to $7.64 billion. Analysts had expected revenue of $7.39 billion, according to IBES data from Refinitiv.
Revenue in its application software businesses rose 18 percent to $1.42 billion, beating estimates of $1.37 billion.
Sales in its security business, which offers firewall protection and breach detection systems, rose 11 percent to $651 million, but fell short of estimate of $656.4 million.
The company’s net income rose to $3.55 billion, or 77 cents per share, in its first quarter ended Oct. 27, from $2.39 billion, or 48 cents per share, a year earlier.
On an adjusted basis, Cisco earned 75 cents per share, above the average estimate of 72 cents.
Total revenue increased 7.7 percent to $13.07 billion, topping estimate of $12.87 billion.
Cisco’s shares were marginally higher at $44.70 in extended trading.
Reporting by Akanksha Rana in Bengaluru; Editing by Sriraj Kalluvila
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