About 8 hours ago, Cisco reported first quarter revenue (2020Q1) of $13.2 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.9 billion or $0.68 per share, and non-GAAP net income of $3.6 billion or $0.84 per share. To put that in perspective, total revenue of $13.2 billion, is up a staggering 2% YoY! And Infrastructure Platforms revenue was actually down 1%. Service provider revenue was down 13%.
But the guidance is even worse. For 2020Q2, they are expecting total revenue to decline 3-5% YoY!!
“We delivered a solid quarter against a challenging macro environment,” said Chuck Robbins, chairman and CEO of Cisco. Well if the engine of the internet can only muster 2% revenue growth, and is forecasting a revenue decline, then the macro environment is sure pretty crappy!
I wanted to save the silver lining for the end. But I am having trouble finding it. How about: “It could have been worse, I guess?”
Not just me, but investors seem quite disappointed. In after-hours trading, the Cisco stock is down 5%.
For more details on Cisco results, see https://investor.cisco.com/news/news-details/2019/Cisco-Reports-First-Quarter-Earnings/default.aspx
Updated April 28, 2020