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Cisco forecasts weak revenue, shares fall | Reuters

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Cisco Systems Inc (CSCO.O), the world’s largest networking gear maker, forecast current-quarter revenue below analysts’ estimates, sending its shares down 5 percent in extended trading.

The company said on Wednesday it expected revenue for its fourth quarter to fall between 4-6 percent from a year earlier, implying a range of $11.88 billion-$12.13 billion.

Analysts on average had expected revenue of $12.51 billion, according to Thomson Reuters I/B/E/S.

The company also said it extended a restructuring plan to include an additional 1,100 job cuts and expected to take $150 million in pretax charges.

Cisco said in August it would cut 5,500 jobs.

The company reported its sixth straight decline in quarterly revenue, largely due to a weak demand in its router business.

Cisco, like other legacy technology players, is shifting its focus to high-growth areas such as security, the internet of things and cloud computing.

The company’s net income rose to $2.52 billion, or 50 cents per share, in the third quarter ended April 29 from $2.35 billion, or 46 cents per share, a year earlier.

Excluding items, the company earned 60 cents per share.

Revenue fell 0.5 percent to $11.94 billion.

Analysts on average had expected adjusted earnings of 58 cents per share and revenue of $11.89 billion.

(Reporting by Anya George Tharakan in Bengaluru; Editing by Sriraj Kalluvila)



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