RealTime IT News

Cisco Beats The Street

Cisco beat estimates and reaffirmed guidance after the close on Tuesday, but the stock was little changed after hours.

Cisco reported earnings of 23 cents a share on revenues of $6.19 billion, beating Wall Street forecasts. The company predicted July quarter revenues of $6.45-$6.6 billion, compared to $6.5 billion expectations.

CEO John Chambers said the company had a "very solid quarter," with strong order growth driven by carrier-class and IP telephony sales.

Gross margins of 66.8% were flat with the seasonally stronger January quarter, a positive, but inventories edged higher, while analysts were looking for inventories to remain flat or decline in the quarter. Cisco also said it will begin to expense options in its October quarter, the first quarter of fiscal 2006.

The broader market tumbled Tuesday on rumors of hedge fund troubles. Some hedge funds were reportedly long GM bonds last week but short the stock, and were hit hard when S&P downgraded GE's debt and Kirk Kerkorian made a big investment in GM stock.

The Nasdaq fell 16 to 1962, the S&P 500 lost 12 to 1166, and the Dow dropped 103 to 10,281. Volume rose to 1.91 billion shares on the NYSE, and 1.65 billion on the Nasdaq. Decliners led 22-10 on the NYSE, and 20-10 on the Nasdaq. Downside volume was 81% on the NYSE, and 74% on the Nasdaq. New highs-new lows were 68-40 on the NYSE, and 47-104 on the Nasdaq.

Priceline , eCost , Sonus and Tom Online fell on their results.

Audible surged on its results, and Nuance soared on a buyout offer.