SAN FRANCISCO: Cisco Systems Inc beat quarterly revenue and profit estimates on Wednesday as Covid-19 lockdowns globally boosted demand for its remote-work tools and networking equipment, sending the Dow component’s shares up nearly 3% after the bell.
The health crisis has forced many businesses to go completely online, increasing the use of video conferencing and virtual private network software, including Cisco’s Webex and AnyConnect.
Revenue for the unit offering Webex declined, but Cisco executives said that was because it also provides older software whose sales have declined as Webex grew strongly. Cisco does not break out sales for Webex, which competes with Microsoft Corp’s Teams software and Zoom Video Communications Inc.
The network gear maker estimated fourth-quarter revenue dropping 8.5% to 11.5% from a year earlier to between US$11.47bil and US$11.86bil. Analysts had expected US$11.82bil, according to Refinitiv data.
Cisco’s third-quarter revenue fell 8% to US$12bil, narrowly beating analysts’ average estimate of US$11.7bil.
Excluding items, earnings of 79 cents per share topped expectations of 69 cents. — Reuters
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