Cisco Systems, Inc. (CSCO) reports revenue of $11.5 billion for the quarter
Cisco Systems, Inc. (NASDAQ:CSCO) has reported that its revenue in the latest period, which ended on April 26th, declined 5.5% to $11.5 billion. The rising data traffic from smartphones and tablets drove the demand for networking equipment and the company cut costs. This beats average analysts estimates for $11.4 billion, according to Bloomberg. The profit was 51 cents a share versus a projection for 48 cents.
Companies are spending money upgrading their computer networks to accommodate bandwidth-hogging applications like Internet video. This fueled the sales of Cisco’s routers and switches.
Some of the challenges that Cisco is facing is that companies are replacing legacy network hardware with software that performs many of the same tasks, known as software-defined networking. This type of software is used by large tech companies like Google and Facebook.
Cisco’s net income fell in the third quarter $2.18 billion (42 cents a share) from $2.48 billion (46 cents a share).