Cisco kicks off fiscal year with strong earnings

CEO John Chambers asserts its mobility and cloud strategies must be working based on positive financials, which beat Wall Street estimates.

John Chambers, Cisco Systems CEO, talks about cloud services at Mobile World Congress 2012. CNET/Marguerite Reardon

Cisco shares rose by 6.8 percent on Tuesday after the bell as the networking giant published a rather solid earnings report for the first fiscal quarter of 2013.

The San Jose, Calif., based corporation reported a net income of $2.1 billion, or 39 cents a share (statement). Non-GAAP earnings were 48 cents a share on a revenue of $11.9 billion -- up by 6 percent on an annual basis.

Wall Street was expecting Cisco to report first quarter earnings of 46 cents per share on revenue of $11.78 billion.

Cisco chairman and CEO John Chambers asserted in prepared remarks that the company's current strategies must be working, as seen by this quarter's results:

Cisco is at the center of the major market transitions -- cloud, mobility, video -- and yet we believe the largest market transition lies ahead of us, as the Internet of Everything becomes a reality. Cisco has the unique ability to turn information that will flow across networks into new capabilities and richer experiences. The Internet of Everything will create unprecedented possibilities for businesses, individuals and countries, and Cisco is poised to lead and fully maximize the opportunities of this evolution.

For the outlook, Cisco is predicting quarterly revenue to grow between 3.5 and 5.5 percent by the end of January 2013  with non-GAAP earnings coming in between 47 to 48 cents a share.

Wall Street is expecting at least a 4.7 percent gain for the second fiscal quarter with earnings again at 48 cents per share.

Key points from Q1 FY 2013:

  • Acquired NDS Group, a provider of video software and content security solutions
  • Announced extended partnership deals with Citrix and EMC for cloud-based collaboration and virtualization solutions
  • Introduced a suite of products for SAP's HANA appliance software built on the Cisco's Unified Computing System for processing data analytics and data warehousing in real-time within in seconds instead of hours

This story was originally published as "Cisco starts off new fiscal year with solid first quarter" at ZDNet's Between the Lines

 

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