Your email address:

Powered by FeedBlitz

Or add to your news reader: Add to My Yahoo! Add to Google

Wednesday, February 4, 2009

Cisco 2Q:2009 results

Cisco reported revenues 9.1 bil vs consensus of 9.0 bil and guidance of down 5-10% from the prior quarter – or a range of 8.85 – 9.35 billion.  Non-gaap gross margins at 64% are slightly better than the consensus of 63.78%.

Good number on the surface relative to the environment.  The conference call (and forward guidance) as always is more important than the reported number.  Analysts have been tweaking numbers down in front of the quarter, with consensus for next quarter settling in at 8.71 bil, gross margins flattish at 63.8% and non-GAAP EPS estimates of 29 cents.  There are some lazy numbers in that consensus – for example, Barclays cut this week and went to 8.45 bil, 64% and 27 cents for next quarter.  Consensus may not reflect fuzzy expectations of down 5% revenue.

    "Cisco showcased solid financial strength during a period of significant economic challenge," said John Chambers, chairman and chief executive officer, Cisco. "We remain comfortable with our long-term vision and strategy as we move into new market adjacencies and prioritize our existing opportunities. We intend to accelerate the alignment of our resources to prioritize future growth opportunities, gradually decrease our operating expenses, while building even stronger customer relationships to position Cisco for ongoing, long-term market leadership."

The Skew:  “Long-term vision” could mean short-term visibility problems.  More after (well, probably during) the call.

No comments:

Blog Archive