Optical/IP Networks

Cisco's Profits Shrink in Q3

Cisco Systems Inc. (Nasdaq: CSCO) reported a lower third-quarter profit than a year ago but still beat expectations with non-GAAP net income of 42 cents per share, higher than the analyst consensus of 37 cents tallied by Thomson Reuters .

For its third quarter, which ended April 30, Cisco reported a profit of $1.81 billion, 33 cents a share, on revenues of 10.87 billion. A year earlier, it reported a profit of $2.2 billion, 37 cents a share, on revenues of $10.37 billion.

Revenues were slightly higher than analysts' expectations of $10.85 billion. Cisco shares were up 55 cents (3%) to $18.34 in early after-hours trading.

— Craig Matsumoto, West Coast Editor, Light Reading

ashuonnet1 12/5/2012 | 5:05:30 PM
re: Cisco's Profits Shrink in Q3

Well, it has come out to be better than what was expected. Revenues have gone up as compare to last year (though slightly, 5%), but profit is a bit down (5%). This clearly shows up that the operational expenses are costing dearly to Cisco. While the market suspects the un-related business acquisitions are the reason, Cisco has also acknowledged the same.

Let's give John Chambers a bit more time to get the things going.

Sign In