“Not bad under the circumstances,” was one analyst’s comment on Cisco’s Q1 results, which were released Wednesday. The company slightly beat Wall Street’s expectation by reporting an 8% increase in revenue to $10.3 billion. Non-GAAP net income was $2.5 billion, or 42 cents a share, bettering analyst’s expectation of 39 cents a share. Although Roger Kay, analyst at Endpoint Technologies Associates asserted that the results were not bad, he said “worse may yet to come,” according to Marketwatch.com.
Cisco CEO John Chambers described Cisco’s Q1 revenue as “solid … in what is clearly a very challenging global economy.”
Cisco’s $2.7 billion cash flow from operations for Q1 2009 was lower than the figure for Q1 2008 ($3.1 billion) and Q4 2008 ($3.5 billion).
Cisco thinks that demand for its networking products will continue to be strong despite the economic downturn because networks drive productivity, the company said in a statement.
Related links:
Cisco sees revenue, earnings hike in Q1; plans hiring freeze
Report: Cisco planning hiring freeze
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