WASHINGTON: We’re moving incredibly fast and doing all the right things to drive our growth and strategic relevance. “Based on what we’re seeing in market transition, with the cloud being a new competitor, for Cisco to hold a very significant market presence – and with all the new transitions going on inside Cisco – I see a good future for Cisco”, said MacDonald.
Nokia Corporation (NYSE:NOK) [Trend Analysis] shares price dropped -0.41% to close at $7.28. Cisco’s overseas sales force may be struggling with the strength of the USA currency, with about 90 percent of Cisco’s revenue coming in dollars, according to an estimate by Cowen & Co., meaning that currency swings can hurt demand and pricing. Products sold into data centres grew 24%, and sales of collaboration products increased 17%. Sales of wireless and security products both rose 7 percent. Cisco expects a non-GAAP gross margin of 62% to 63%. Moreover, Tweedy Browne Co Llc has 7.57% invested in the company for 9.98 million shares.
Nevertheless, Robbins framed Q1 as “a very strong quarter”, driven especially by software and cloud strategies. Asia-Pacific saw orders up 9%, for a company total of 3% order growth. Cash flow from operating activities shot up by 11% year over year, settling at $2.8 billion.
Provision for Income Taxes – The non-GAAP tax provision rate was 23.0%. The GAAP tax provision rate was 22.5%. The company forecasted EPS to be within the $0.55-$0.57 range for this quarter and revenue to be between $12.49 billion and $12.73 billion. It has a 52 week low of 21.77%, a 52 week high of -6.05%, and a simple moving average of 2.80% over the last 50 days. Cisco ended the quarter with $59.1 billion in cash, cash equivalents and investments.
During the quarter, Cisco paid $1.1 billion as dividend. Cisco continued to build a greater mix of recurring revenue as reflected in deferred revenue. During the last trading day, the minimum price at which share is traded was $1.83 and peak price of the day was $2.25. Adjusted earnings per share of 59 cents exceeded the 56 cents expected and revenue of $12.68 billion just nipped the $12.65 billion expected for the quarter, Cisco’s fiscal first quarter of 2016.
Cisco shares fell 5.13 percent to $26.42 in the after-hours trading session. Finally, BMO Capital Markets reiterated an “outperform” rating and issued a $34.00 price target (up from $33.00) on shares of Cisco Systems in a research note on Thursday, August 13th.
“We delivered a strong first quarter as we executed on our financial model of driving profitable growth, managing our portfolio and delivering shareholder value”, said Kelly Kramer, executive vice president and chief financial officer, Cisco. This represents a $0.84 dividend on an annualized basis and a dividend yield of 3.20%.
However, he did highlight a string of acquisitions (Portcullis, Lancope, ParStream OpenDNS, Pawaa and MaintenanceNet) Cisco either announced or closed in Q1. This reduces the overall attack surface, containing network threats, and securing wired, wireless and remote network access across the entire attack continuum.
But sales in its second-largest business, routing, declined 8 percent from the previous year to $1.79 billion. In the fourth quarter of fiscal 2015, Cisco announced an agreement to sell the Client Premises Equipment portion of its Service Provider Video Connected Devices business (CPE business) to Technicolor.
