CISCO SYSTEMS INC Common Stock
NASDAQ: CSCO
Cisco Delivers and Earnings Beat but Trades Flat
Cisco reported it’s third quarter earnings after the close of trading on Wednesday, May 13th, 2015. The company reported an earnings and revenue beat. Analysts were expecting earnings of 53 cents per share and a revenue of $12.07 billion. Cisco returned with earnings of 54 cents per share and $12.1 billion in revenue. Third quarter revenue represented a 5% increase year over year. To read the entire press release visit the Cisco Investors Relation website here. Year to date shares of Cisco are up over 25%.
“Cisco is in a very strong position and we delivered another solid quarter. Our vision and strategy are working and we are executing very well in a tough environment, as evidenced in our revenue growth, profitability, strong gross margins and cash generation. Our customers feel the pace of change and disruption in every industry and market, and know their success depends on digitizing their business. Whether they are the disruptor or the incumbent, they are coming to Cisco as their strategic partner. We believe we are pulling away from our competition using the same formula we’ve always used: integrating our industry-leading products in every category into architectures and solutions that deliver real outcomes. We’ve created this opportunity and it is ours to execute” – John Chambers, CEO
This earnings report will be the final report for CEO John Chambers. Chambers has been CEO for 20 years and will be retiring in July. During regular market hours rumors were circulated that Cisco may be in talks to make an aquisition of FireEye ($FEYE). FireEye is a cyber security company with a market cap of $6.46 billion. Chambers broke protocol in an interview by saying that although it’s Cisco’s policy not to comment on speculation of possible take overs, “I wouldn’t bet on the one you heard today”. Shares of FEYE promptly fell 5%.
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About Cisco
Cisco, founded in San Jose, California, in 1984, is a designer and producer of communication equipment including routers, switching products, and cable products. “For 30 years, our techology has changed the way the world works, lives, plays and learns.” Cisco has over 70,000 full time employees.
