RealTime IT News

Cisco's Numbers Solid

Cisco Systems gave tech investors reason to cheer late Tuesday with better than expected results.

Cisco's earnings of 26 cents a share were a penny ahead of estimates, and sales climbed 9.3% from the year-ago quarter to $6.63 billion, just ahead of forecasts.

Cisco reported its strongest U.S. order growth in six quarters, up 20%, and also said it plans to move toward a leaner manufacturing model over the next six-to-eight quarters. Gross margins of 67.9% were also better than expected. Japan continued to be a weak spot.

"We're pleased with the solid revenue and earnings per share results Cisco delivered during its second quarter, but also especially pleased with our strong order momentum," CEO John Chambers said in a statement. "This proves our strategy is working in terms of the convergence of voice, video and data along with our balanced approach to our customer segments, core and advanced technologies, business and technology architecture and key geographic theaters."

The networking giant's April quarter sales guidance of 10-12% year-over-year growth was toward the low end of analysts' 11.6% estimates. Cisco expects to close its acquisition of Scientific Atlanta in the quarter.

Still, after several high-profile technology earnings disappointments in recent weeks, Cisco's results were welcome news to investors, who bid shares 5% higher after hours.

Stocks remained under pressure Tuesday after GM cut its dividend and Toll Brothers posted disappointing results.

The Nasdaq lost 13 to 2244, the S&P 500 fell 10 to 1254, and the Dow declined 48 to 10,749. Volume rose to 2.37 billion shares on the NYSE, and 2.19 billion on the Nasdaq. Decliners led 21-10 on the NYSE, and 20-9 on the Nasdaq. Downside volume was 74% on the NYSE, and 56% on the Nasdaq. New highs-new lows were 90-33 on the NYSE, and 100-37 on the Nasdaq.

Sohu , Cnet and ViaSat rose on their results.

Raindance jumped on a buyout offer from West Corp. .

J2 Global and Activision fell on their results.

Conexant fell on an adverse patent ruling.