Cisco Revenue Down 19% in Europe
Europe was a sore spot for Cisco Systems Inc. (Nasdaq: CSCO) in the company's first quarter and will "get worse before it gets better," CEO John Chambers said on Tuesday's earnings call.
It's the one blemish on an otherwise sunny outlook, as Cisco saw business recovering in other geographies and most of its business segments.
Cisco's revenues from European service providers were down 19 percent compared with last year's first quarter, Chambers said. (Cisco's first quarter ends in October.)
Cisco's revenues from U.S. service providers were up 13 percent from a year ago. But worldwide, the company's service-provider sales were up only 3 percent.
Most other categories saw growth for Cisco, especially the U.S. enterprise market, which was up 9 percent. The big downer was the U.S. federal market, which dipped 15 percent in the first quarter, compared with the same quarter a year ago. Cisco expected that one, though, Chambers said.
Overall, Cisco expects revenues for its second quarter, which ends in January, to be $11.93 billion to $12.16 billion. The midpoint of that range would be $12.05 billion, which is just better than the $12.02 billion that analysts were expecting, according to Thomson Reuters .
Separately, Chambers made a sidelong reference to the increasing friction between the U.S. and China, noting that Cisco still counts China as a buddy. "We have invested a lot of resources and innovation in China for the last 20 years, and our commitment to China has not diminished in any way," he said.
The above information is edited by 10GTEK.
10GTEK TRANSCEIVERS CO., LTD (Hereinafter refered to as 10GTEK) is specialized in developing and manufacturing Fiber Optical Transceivers and High Performance Cables which are wildly applied in Datacom, Telecom and CATV, providing customers with top quality and cost effective products. Our High Speed Cables cover Passive SFP+ Cable, Active SFP+ Cable, QSFP+ cables, MiniSAS (SFF-8088) Cables, CX4 Cables, Harness cables, Breakout Cables, Patchcords. We also manufacture Fiber Optic Transceivers like 10G XFP, 10G SFP+, SFP DWDM/ CWDM, GBIC, etc. The prompt response and excellent customer support contribute to clients‘ full satisfaction.Today, 10GTEK has been growing fast in the optical field for its unique and competitve excellence which has got a high attention from datacom and telecom.
This article reader also like: Advanced Photonix/Picometrix boasts $5.9M order for 100G optical receivers