Cisco earnings in Q3 beat market estimates

SAN FRANCISCO, May 15 (Xinhua) — U.S. tech leader Cisco Systems, Inc. said Wednesday that it has about 13 billion U.S. dollars in revenue for the third quarter ending on April 27, beating the market estimate of about 12.89 billion dollars.

The company said the revenue increased by 6 percent year on year, and the third quarter’s net income on a generally accepted accounting principles (GAAP) basis was 3.0 billion dollars or 0.69 dollar per share, up 13 percent from a year earlier.

“Our strong performance in the quarter was across the business, reflecting our customers’ confidence in our strategy, business model and market-leading portfolio,” said Chuck Robbins, chairman and CEO of Cisco.

Cisco made a big portion of profits from its Infrastructure Platforms business, including sales of networking hardware and software such as routers and switches for data centers. Revenue from this segment amounted to 7.55 billion dollars for the third quarter, up 5 percent year on year.

Its security business grew 21 percent year on year for the third quarter to reach 707 million dollars.

Its cash and cash equivalents stood at 34.6 billion dollars at the end of the third quarter of fiscal 2019, down from 40.4 billion dollars from the previous quarter, said the company based in San Jose, California.

With the better-than-expected quarterly financial results, Cisco reported a strong revenue guidance for the fourth quarter.

The company expects its revenue for the next quarter to grow between 4.5 percent and 6.5 percent, with GAAP earnings per share at between 0.66 dollars and 0.71 dollars.

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