Home / Networking / Cisco satisfies Q2 targets despite net loss from tax charge

Cisco satisfies Q2 targets despite net loss from tax charge



Cisco delivered in-line second quarter financial results Wednesday after the bell.

The tech giant reported a net loss of $8.8 billion, or $1.78 per share. Cisco said the dramatic net loss was due to an $11.1 billion charge related to recent US tax reform.

Non-GAAP earnings were 63 cents per share on a revenue of $11.9 billion, up 3 percent year over year. A year ago, Cisco earned 57 cents a share on sales of $11.6 billion.

Wall Street was looking for earnings of 59 cents per share with $11.81 billion in revenue. Cisco’s shares were up more than 5 percent after hours.

For the current quarter, Wall Street is looking for non-GAAP earnings of 63 cents per share with $12.13 billion in revenue. Cisco responded with a revenue outlook that ranges from a 3 percent to 5 percent increase, with EPS between 64 cents a share and 66 cents a share.

Cisco’s revenue by segment breaks revenue down in the following categories: infrastructure platforms, applications, security, services and other. Infrastructure platforms revenue was up 2 percent to $6.7 billion; applications revenue was up 6 percent to $1.2 billion; security revenue was up 6 percent to $558 million; and other products revenue was $273 million, down 10 percent.

“We had a great quarter which demonstrates that our strategy is working. Our business is growing, we have a fantastic innovation pipeline, our balance sheet is strong and we have a team that’s executing incredibly well,” said Cisco CEO Chuck Robbins. “The network is more critical to business success than ever, and our new intent-based networking portfolio has great momentum including the fastest ramping new product in our history.”

Source link

About admin

Check Also

Weekend work sees NBN reduce Victorian storm outage total to 7,500 premises

Image: NBN The company responsible for running the National Broadband Network has said around 7,500 ...