RealTime IT News

Cisco Misses Again

Cisco Systems missed Wall Street revenue estimates for the second consecutive quarter after the close on Tuesday.

Cisco's pro forma earnings of 22 cents a share met estimates, but sales of $6.06 billion came in under $6.13 billion expectations. Gross margins of 66.8% were also a little under expectations, and rising accounts receivable and inventories also raised eyebrows.

Cisco said it expects April quarter revenues to be flat to up 2% sequentially, which would come in below $6.23 billion analyst estimates.

Cisco said its results were strong across all segments, but the company's stock fell 2% after hours.

Shares of Cisco tumbled 6.6% on its last earnings report after the company's sales came in below Wall Street estimates.

Also after the close, Open Text and Blue Nile beat estimates but warned.

Stocks posted modest gains Tuesday ahead of Cisco's earnings report.

The Nasdaq rose 4 to 2086, the S&P 500 added half a point to 1202, and the Dow climbed 8 to 10,724. Volume rose to 1.41 billion shares on the NYSE, and 1.96 billion on the Nasdaq. Advancers led 18-14 on the NYSE, and 16-14 on the Nasdaq. Upside volume was 53% on the NYSE, and 56% on the Nasdaq. New highs-new lows were 258-15 on the NYSE, and 146-24 on the Nasdaq.

McAfee and Symantec tumbled on Microsoft's latest security move.

EDS , Sina , Earthlink and Level 3 fell on their results.

Business Objects surged 13% on better than expected results, and Extended Systems soared 35% on its results. TriQuint gained 10% on its earnings report.

eBay rose 4% after the company changed its purchase of Rent.com to an all-cash deal. eBay's stock has fallen 33% since the deal was announced.

Primedia rose 12% on reports that it may sell the About.com site.

Ariba plunged 17% after losing a patent ruling.