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

TruePulse buys and sells surplus central office telecommunications equipment including Cisco, Fujitsu, Nortel and Lucent.

Updated April 28, 2020