Cisco shares rise in after-hours trading despite drop in revenue

 
Julian Harris
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NETWORK equipment manufacturer Cisco Systems posted a lower-than-expected 5.5 per cent drop in quarterly revenue late last night, prompting the US giant’s shares to climb in after-hours trading.

Cisco reported a net profit of $2.2bn in the third quarter, down from $2.5bn in the same period a year earlier.

The company revealed revenue of $11.5bn, down from $12.2bn a year earlier. Analysts of Wall Street had on average expected $11.36bn in sales, according to data from Thomson Reuters I/B/E/S.

Chief executive officer John Chambers said last night: “I’m pleased with our performance in the third quarter.

“Our financial results exceeded the guidance we provided last quarter as we demonstrated clear progress on returning to growth. The entire team is focused on moving Cisco forward aggressively and we remain confident in our long-term goal to be the number one IT company.”