Cisco Systems, Inc. (NASDAQ:CSCO) posted its quarterly earnings on Wednesday which saw the company meet earnings expectations of $0.61 earnings per share while beating revenue forecasts with $12.1 billion in sales.
The company’s revenues dropped year-over-year and Cisco’s forecast for Q1 expects that trend to continue with losses expected to range from 1% to 3%.
A breakdown of the company’s revenue showed that although the majority of revenue (59%) still comes from the ‘Americas’ segment, it along with the European segment were both down 6% from the prior year. The only increase in revenue came from Asia where sales were up 6% from last year.
A look at its products and services shows a similar trend. Cisco’s top contributing items – switching and NGN routing which accounted for 44% of revenue for the quarter were both down 9% year-over-year. It was wireless and security products and services that had the biggest improvements as they were up 5% and 3%, respectively.
This could be a sign that Cisco’s home location and big dollar items are starting to slow down as the same trends were evident for the full fiscal year as well. The company may need to further expand its customer base and product base in order to continue to grow revenue.
The tech giant is still doing well by any stretch and with over a 3.5% dividend along with a strong share repurchase program, it is providing a lot to its shareholders. Year-to-date the stock has been up over 7% but after hours trading on Wednesday showed the stock down 2.5% on news of the earnings.
