The multinational technology conglomerate posted a better than expected earnings report. The income came in at $2.8 billion. The revenue dropped by 8% compared to the same period last year to $12 billion from $12.96 billion. The EPS was 79 cents after adjustment.
The satisfactory result came as a response to the work from home policy installed due to the pandemic. The company's CEO said that organizations from all around the world had to optimize their operations and support remote working. Cisco’s goal was to help others do that. He continued saying that more than 95% out of 75,900 employees are working from home.
Infrastructure Platforms – The company's largest segment designed for corporate data centers had a revenue of $6.43 billion, 15% lower - it fell behind the $6.83 consensus.
The Applications segment from which Webex video-calling service is a part had a revenue of $1.36 billion, 5% lower compared to the same period last year, and smaller than the $1.43 billion consensus. In April alone, Webex had over 500 million active participants.
Unlike other companies who pulled out their guidance for the next quarter, Cisco provided detailed information on it. The revenue could decrease between 8.5%- 11.5%, to approximately $12 billion.
Cisco stocks went up 3% in after-hours trading. YOY, the stock plummeted 20%, but since March 12, shares gained 30%. USA500 lost 1% in the same time frame.
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Sources: cnbc.com, marketwatch.com
