As noted by IDG News Service/Network World, Cisco Systems reported another soft quarter on February 12, saying that its profits have fallen by more than half, and that its revenue has declined by nearly 8 percent.
"For its second fiscal quarter, which ended Jan. 25, Cisco reported revenue of $11.2 billion and net income of $1.4 billion, or $0.27 per share. That profit figure was down 54 percent from $3.1 billion, or $0.59 per share, a year earlier," writes IDG's Stephen Lawson.
Macroeconomic factors were the most prominent cause of the networking vendor's weak first-quarter results and forecast. "Sales were dramatically lower in most of the company's important developing markets, executives told financial analysts. But transitions in some product lines also hit sales," added the IDG report.
Silver lining: For its data centers and security businesses, Cisco said it amassed more revenue and orders than for the year prior. Cisco CEO John Chambers said the company's UCS (Unified Computing System) data center architecture continues to gain market share.
More news: Cisco, Microsoft team on cloud data center
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Cisco buffs up Catalyst Ethernet switches
Cisco lays off 2% of workforce
Thursday, February 13, 2014
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