Naz News, Gappers and FLE's

[sludgehound]

CSCO bit testing of 29 onite.

Ended @29.20 Cramer had Chambers on for extended yack.
Before that Fast Money covered the #s w/ headline: Cisco beats low expectations

Cisco Systems Inc. kept up its recent rebound in the latest quarter, rebuilding momentum in several key markets as longtime Chief Executive John Chambers prepares to give up the post.
The maker of network equipment said net income in its third fiscal period rose 12% on revenue that increased 5.1%. Cisco in February had projected revenue would rise 3% to 5%.
Mr. Chambers reaffirmed that projection last week on announcing plans to give up the CEO title to longtime lieutenant Chuck Robbins on July 26 .
"There could not be a better time to begin Cisco's next chapter," said Mr. Chambers, who intends to stay on as executive chairman.
For the current quarter, Cisco projected earnings and revenues in line with Wall Street estimates. Shares of Cisco , up 28% over the past year, slipped 0.7% in after-hours trading
The San Jose, Calif. , company experienced a string of lackluster quarters into 2014. More recently, though, it has been aided by a turnaround in sales of switching systems, its largest single business. The company faces stiff competition in that area, but it recently released a new product line that is proving very popular.
Cisco said switch revenue rose 6% during the period ended April 25 . Revenue from routing equipment, another key variety of communications plumbing, increased 4%, the company said.
But Cisco continues to struggle in equipment that cable companies use to deliver video to their subscribers, losing sales to rivals like Arris Group Inc. and Casa Systems Inc.
Cisco last week announced a long-awaited product line designed to allow cable companies to provide Internet access as well as video. But Cisco on Wednesday reported that revenue for the so-called service provider video segment declined an additional 5%.
Mr. Chambers said orders from all U.S. service providers declined 17%.
Another trouble spot is China , where Cisco and other technology suppliers have been hurt by suspicions about their links to U.S. intelligence agencies. Cisco's total Asia-Pacific sales grew 1% in the latest quarter, but its business in China declined another 20%, Mr. Chambers said. Russia has also been very weak; revenue from that country declined 41% in the quarter, he said.
Cisco has weathered a series of boom-and-bust cycles under Mr. Chambers, frequently feeling the effects of industry trends sooner than its peers. It has also battled a series of rivals that targeted portions of its product line. One example is Arista Networks Inc. , a startup led by former Cisco executives that has grabbed a sizable share of the switching market.
Recently, the company has faced gloomy predictions by promoters of a shift to low-cost hardware from Asian rivals and the migration of some networking chores to software rather than specialized hardware.
Among many responses, Mr. Chamber has stressed Cisco's role as a broader partner able to provide to customers a range of hardware, software and consulting services. That strategy has particularly attracted government and education customers, said Ken Leon , an analyst with Standard & Poor's . Mr. Chambers said orders from U.S. federal government customers rose 24% in the quarter.
"We've moved from selling boxes to partnering with customers on their outcomes," he said.
In all, Cisco reported net income of $2.44 billion , or 47 cents a share, compared with a year-earlier profit of $ 2.18 billion , or 42 cents a share. Revenue rose to $12.14 billion from $11.55 billion .
Cisco said per-share earnings increased to 54 cents a share from 51 cents on an adjusted basis that excludes stock- based compensation and other items. On that basis, analysts polled by Thomson Reuters had expected earnings of 53 cents a share on revenue of $12.07 billion .
For the current period, ending in July, Mr. Chambers put adjusted earnings per share at 55 cents to 57 cents . He estimated revenues would rise 3% to 5% from the year-earlier quarter.
Analysts on that basis had projected earnings per share of 56 cents , according to Thomson Reuters . They estimated revenue of $12.59 billion , or 2% higher than the same period in 2014.
Write to Don Clark at [e-mail] and Tess Stynes at [e-mail]
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(END) Dow Jones Newswires
05-13-15 1816ET
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