Cisco beat analyst estimates with its second-quarter earnings, posting revenue of US$10.4 billion and earnings per share, excluding expenses, charges and other items, of $0.37.
Analysts polled by Thomson Reuters expected Cisco to report revenue of $10.24 billion and adjusted earnings per share of $0.35.
Revenue was up 6 percent from the second quarter of Cisco's fiscal 2010 but earnings per share fell 8 percent. Three months ago, Cisco warned that second-quarter results would fall short of expectations due to softness in some key vertical and geographic markets.
Net income, on an adjusted basis, was $2.1 billion in the second quarter.
"The quarter played out as we expected. Our strategy of tightly integrating our multiple products through an architectural approach is working, and we are delivering innovation in each major product family," said John Chambers, Cisco chairman and CEO, in a statement. "As a company, we are going through a period of transition as we move aggressively in the market with our architectural strategy. We have managed these market transitions many times, positioning Cisco and our customers for success. Simply put, we are owning our evolution and the next generation of industry leadership."
Net sales for the first six months of fiscal 2011 were $21.2 billion, compared with $18.8 billion for the first six months of fiscal 2010. Adjusted net income for the first six months of fiscal 2011 was flat at $4.5 billion, or $0.80 per share, compared with $4.5 billion, or $0.76 per share, for the first six months of fiscal 2010.
Jim Duffy reports for Network World.