Cisco Q4 Hides a Frown
Cisco's earnings pretty much met analysts' expectations, with revenues of $10.84 billion and non-GAAP net income of 43 cents per share for the fourth quarter, which ended July 31.
For its first quarter, though, Cisco expects revenues to be 18 to 20 percent higher than a year earlier. That translates to $10.64 billion to $10.83 billion, versus the analyst consensus of $10.95 billion reported by Thomson Financial .
In other words, Cisco expects revenues to shrink this quarter.
Cisco CEO John Chambers, amid his usual happy-go-lucky patter, noted on today's earnings call that the company is worried about worldwide GDP growth and projections; job levels; and Europe in general. (No specifics on that last one, as of this writing.)
Chambers also said Cisco's customers would agree with the Federal Reserve in believing the economic recovery has slowed "and is likely to be more modest in the near term than was anticipated."
That's somber compared with last quarter, which was all rainbows and unicorns. (See Cisco Q3: Best. Quarter. Ever. )
Delays in product shipments have been an ongoing problem. Cisco says it's gotten lead times under control for most of its customers but is still seeing shortages in the components it buys. CFO Frank Calderoni said that situation could linger through December.
— Craig Matsumoto, West Coast Editor, Light Reading