Cisco Systems (Nasdaq:CSCO) announced its results for the most recent quarter on November 13, 2012. Cisco Systems is a multinational corporation engaged in the design, manufacturing, and sales of Internet Protocol-based consumer electronics, networking, and other services related to communications and information technology.
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The Numbers: Cisco Systems' latest numbers were good, as the company announced EPS and revenues that came in ahead predictions. The company reported adjusted net income of 48 cents per share versus the 41 cents per share estimate and revenues of $11.88 billion versus the $11.58 billion estimate. Revenue climbed 5.5% from the same period last year. Cisco Systems' revenue has grown during each of the past four quarters on a year-over-year basis. Cisco Systems reported net income of $2.09 billion during the first quarter. According to the reported number, this is up 17.7% from last year's figures. Last quarter marked the third in a row of rising net income.
Management Quote: "We delivered record results this quarter -- with revenue growth of six percent and strong earnings per share growth -- demonstrating our vision and strategy are working," said John Chambers, chairman and chief executive officer, Cisco. "Our innovation engine, operational discipline and on-going evolution are enabling us to differentiate in the market." Chambers continued, "Cisco is at the center of the major market transitions -- cloud, mobility, video -- and yet we believe the largest market transition lies ahead of us, as the Internet of Everything becomes a reality. Cisco has the unique ability to turn information that will flow across networks into new capabilities and richer experiences. The Internet of Everything will create unprecedented possibilities for businesses, individuals and countries, and Cisco is poised to lead and fully maximize the opportunities of this evolution."
A Look Back: Gross margin shrank 0.3 percentage point to 61%. The contraction appeared to be driven by increased costs, which rose 6.2% from the year earlier quarter while revenue rose 5.5%.
Net income has increased 25.7% year-over-year on average across the last five quarters. The biggest gain came in the fourth of the last fiscal year, when income climbed 55.6% from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the second quarter has moved down from 43 cents a share to 42 cents over the last 30 days. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. Over the past three months, the average estimate for the fiscal year has climbed from $1.70 per to share to $1.72.