San Jose’s Cisco posts smaller than expected drop in quarterly revenue, shares soar



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San Jose’s Cisco posts smaller than expected drop in quarterly revenue, shares soar

Later this week, the San Jose, California-based American multinational networking hardware company, Cisco Systems, had reported a smaller-than-anticipated decline in quarterly revenues over its first fiscal quarter of the year that ended on October 24 as more people working from home due to the pandemic driven lockdown, had stoked demands for its teleconferencing equipment, networking tools alongside cybersecurity products.

Besides, apart from an upbeat quarterly earnings’ report, Cisco had also reported that its Chief Financial Officer Kelly Kramer would be replaced by Scott Herren by December 18 this year, leading to a strident leapfrog of Cisco shares’ prices, while the Nasdaq-listed Cisco stocks wrapped up Friday’s market 7.06 per cent higher to $41.40 apiece after surging as much as 9 per cent in pre-market trading.

Cisco beats estimates for quarterly revenues

On top of that, the San Jose-based American multinational tech conglomerate had also added in its quarterly earnings’ report that the pandemic-led lockdown had prodded a strong demand for its video conferencing platform Webex, Virtual Private Network (VPN) AnyConnect alongside other cybersecurity products as offices remained shuttered down with more and more people working from home, while the company had reported a 9 per cent plunge in quarterly revenues to $11.93 billion during its first fiscal quarter that ended on October 24 compared to the same time a year earlier.

Nonetheless, the American supplier of networking device instruments had beaten a Wall Street estimate of $11.85 in quarterly revenues on an average, IBES data from Refinitiv had revealed as Cisco Systems’ downside in offline businesses were largely overshadowed by its strength in services segments.

On top of that, the California-headquartered one of the world’s largest networking hardware company, Cisco Systems, had reported a profit of 76 cents per share in contrast to the same time a year earlier, beating an analysts’ estimate of 70 cents in profits per share on an average.