Cisco’s profits fall by more than half in second quarter to US$1.4bn

13 Feb 2014

Networking equipment maker Cisco ended its second quarter with revenue of US$11.2bn and net income of US$1.4bn, reflecting a decrease of 7.8pc and 54.5pc year-over-year, respectively.

The company’s earnings per share for the second quarter, ended 25 January, amounted to US$0.17.

Cash flows from operations totalled US$2.9bn for the quarter, compared with US$3.3bn in the year-ago period.

Cash and cash equivalents and investments reached US$47.1bn, compared with US$48.2bn at the end of the first quarter of fiscal 2014.

In November, Cisco had pared down expectations for the coming year, citing shaky economic conditions worldwide and transitions in some of its product lines.

The company’s CEO and chairman John Chambers said Cisco delivered results yesterday that were expected in this second quarter.

“I’m pleased with the progress we’ve made managing through the technology transitions of cloud, mobile, security and video,” Chambers said. “Our financials are strong and our strategy is solid.

“The major market transitions are networking centric and as the internet of everything becomes more important to business, cities and countries, Cisco is uniquely positioned to help our customers solve their biggest business problems.”

Tina Costanza was a journalist and sub-editor at Silicon Republic