Cisco posted first quarter revenue and earnings down slightly on a sequential basis but up from a year ago.
Cisco recorded Q1, 2006 revenue of $6.55 billion, down .5% from the fourth quarter of fiscal 2005 and about $30 million shy of analyst expectations, according to Thomson First Call. Revenue was up almost 10% from year ago results, however.
Pro forma net earnings, which exclude charges and other expenses, were $1.57 billion, slightly better than analyst expectations but down 3.5% from the fourth quarter of fiscal 2005.
Including charges and other expenses, Cisco’s earnings for the quarter were $1.26 billion, up 12.6% from a year ago but down .3% sequentially.
“Q1 was a solid quarter for Cisco, with balanced execution across most of our geographies, market segments and product categories,” said John Chambers, Cisco president and CEO, in a statement. “We are especially pleased with the improving business momentum in the U.S. and Asia Pacific, the strength of our product families and the accelerated growth of the commercial marketplace, which has become our fastest growing customer segment.”
The first quarter is usually the lowest quarter in terms of order and revenue growth, Chambers said during a Webcast to discuss the quarter’s results. Orders were flat in Europe from a year ago, but up 15% in the U.S., Chambers said.
Products orders overall were up 12% to 13% from a year ago. The Commercial market is Cisco’s fastest growing market, with year-over-year order growth in the mid-20% range. Orders in Enterprise were up in the “low double digits,” Chambers said, while Service Provider orders were up 25% in the U.S. and all other geographic theatres except Europe and Japan, where they were down in the “low double digits” and 40%, respectively.
Product sales accounted for $5.5 billion in the quarter, while services made up the remaining $1.06 billion. Routers accounted for $1.42 billion in revenue for the quarter, an increase of 13% form the year ago period.
Switches were $2.68 billion, up 3%; Advanced Technologies — IP telephony, storage, security and wireless products among them — were $1.21 billion, up 25%; and sales of “other” products — including optical — was $183 million, down 16% from year ago results. Orders for optical products were down 40% from a year ago, Chambers said.
Cisco will announce two new Advanced Technology product categories before the end of the year, Cisco officials said on the Webcast.
Cisco is forecasting revenue growth in Q2 of 8% to 9% from the same period a year ago, and flat to up slightly sequentially on a pro forma basis.
