Cisco Systems, Inc. (NASDAQ:CSCO) reported upbeat results for its first quarter, but issued second-quarter guidance.
The San Jose-based company reported Wednesday first-quarter results for the period ended October 26, 2019. Cisco reported first-quarter revenue of $13.2 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.9 billion or $0.68 per share, and non-GAAP net income of $3.6 billion or $0.84 per share.
On a GAAP basis, total gross margin, product gross margin, and service gross margin were each 64.3%, as compared with 62.3%, 61.6%, and 64.6%, respectively, in the first quarter of fiscal 2019.
Cisco completed the divestiture of the Service Provider Video Software Solutions (SPVSS) business in the second quarter of fiscal 2019 on October 28, 2018. Revenue and non-GAAP financial information have been normalized to exclude the SPVSS business from prior periods for comparative purposes.
Said CEO Chuck Robbins "We delivered a solid quarter against a challenging macro environment. We're focused on continuing to drive innovation, transform our business and exceed our customers' expectations."
Cisco completed several acquisitions in the first quarter of fiscal 2020. In addition, in the fourth quarter of fiscal 2019, the company announced our intent to acquire Acacia Communications, Inc., a publicly-traded fabless semiconductor company that develops, manufactures and sells high-speed coherent optical interconnect products that are designed to transform communications networks through improvements in performance, capacity and cost.
The acquisition is expected to close during the second half of fiscal 2020
Shares dipped $3.12, or 6.4%, to $45.34.
