Cisco reported that sales have stabilized and the prolonged slump in corporate spending on technology may have leveled off.
"no one knows how long this leveling out will last or whether it will result in an upturn several quarters from now." – Added John Chambers (CEO)
- Revenue dropped by 16.6% to $8.2 billion slightly better than what analysts expected $8.1 billion.
- Net profit fell to $1.3 billion or 30c per share, from $1.8 billion YoY. Which was above analysts estimates of 25c per share.
Tighter credit and the recession have discouraged Cisco’s customers from big tech investments. But Cisco have been cutting costs. This is reflected on their total operating expense which as$3.6 billion from $4.1 billion.
- Cisco also mentioned that long-term revenue growth between 12% to 17% is now possible.
What I love most about Cisco is their balance sheet and their constant ability to generate positive cash flows QoQ which was $2.0 billion this quarter. Total cash and cash equivalent for Cisco is now $33.6 billion. Man I wish they could offer dividends that would really make me a buyer.
Source: Reuters
0 comments:
Post a Comment