Cisco Systems Loses $268 Million
SAN JOSE, Calif. (AP) _ Cisco Systems Inc. posted a first-quarter net loss of $268 million, beating Wall Street’s expectations, sending shares of the networking giant higher in after-hours trading.
For the three months ended Oct. 27, Cisco lost 4 cents per share, compared with a profit of $798 million, or 11 cents per share, in the same period a year ago.
Excluding one-time items, the company earned $332 million, or 4 cents per share, compared with $1.4 billion, or 18 cents per share, a year ago.
Analysts were expecting a profit of 2 cents a share, according to a survey by Thomson Financial/First Call.
Revenue for the first quarter fell 32 percent, to $4.4 billion over a year ago, but increased 3 percent over the previous quarter’s $4.3 billion. Analysts were expecting first-quarter sales of $4.2 billion.
Cisco, which makes routers and other devices that move traffic over the Internet and other data highways, suffered as businesses in general telecommunications companies specifically cut back spending.
``Given the very challenging economic and capital spending environment, we were pleased to deliver a solid quarter with good linearity, sequential revenue growth and profitable market share gains,″ said John Chambers, Cisco’s chief executive.
Shares moved up 75 cents, or 4 percent, to $18.65 in after-hours trading. Before the report was released, Cisco gained 64 cents to $17.90 on the Nasdaq Stock Market.
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