Cisco Increases Quarterly Profit; Shares Fall 9%
SAN JOSE. Calif.
Cisco Systems, a manufacturer of network equipment, announces a 37-percent rise in quarterly profit on solid demand from telecom carriers; however, the company’s shares fell 9 percent.
John Chambers, Cisco CEO, says he had expected a dramatic decrease in orders from American financial institutions and auto companies.
The company said its fiscal first-quarter profit raised to $2.2 billion from $1.6 billion – up 9 cents a share – from the same time a year earlier.
Revenue rose to $9.6 billion for the quarter, up 16.7 percent, but the company had forecasted revenue of $9.45 billion to $9.55 billion.
The stock closed down 4 percent, at $32.75, and it continued to fall to $29.82 after the results were released, reported Reuters.
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