Cisco's Profits Shrink in Q3
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
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.