Cisco Systems has released its financial results for the last quarter, posting better-than-expected profits, but the markets are not buying this supposed confidence as the share price has fall.
Estimates for the Cisco financial results for this quarter were only slightly less than what was actually achieved, being $0.56 per share and revenues of $12.64bn, whereas the company actually made $0.59 per share and revenues of $12.68bn.
This marks a revenue increase of 3.6pc over the previous quarter as well as an increase in profits and sales of 9pc and 4pc, respectively.
Where the company has performed best, CNBC said, is its offering of data centres, which saw its revenues from cloud storage increase by nearly one-quarter (24pc) to a total of $859m while its network switching provided the most revenue at $4.02bn, climbing 5pc on last year.
However, its routing business took a dip by 8pc on last year with revenues totalling $1.79bn.
With seemingly more successes than failures in this financial quarter, Cisco has announced that it is to proceed with the takeover of four companies, those being, the data analytics firm ParStream, video software curator 1 Mainstream and the security duo of Portcullis and Lancope.
In a statement on its performance this financial quarter, Cisco’s CEO Chuck Robbins said: “Q1 was a very strong quarter. We are accelerating our ability to deliver on growth opportunities, aggressively driving our cloud business, and delivering continued strength in our deferred product revenue, as we sell more of our portfolio in software and cloud models.”
However, a caveat to this was that the last quarter showed “lower than expected order growth” which was blamed on a combination of currency exchange and economic uncertainty.
As a result, shares in the company fell by 5pc to $26.43 per share during after-hours trading.
Cisco sign image via Prayitno/Flickr