NEW YORK Cisco's earnings and revenue grew in the latest quarter as demand for its computer networking equipment increased, but it gave a gloomy outlook for coming quarters and announced it is laying off 4,000 people.
That's about 5 percent of the company's workforce.
Cisco Systems Inc. (CSCO) earned $2.23 billion, or 42 cents per share, in the three months that ended on July 27. That's up from $1.92 billion, or 36 cents per share, a year earlier.
Adjusted earnings were 52 cents per share in the latest quarter, squeaking past Wall Street's expectations by a penny. This figure excludes charges stemming from a patent settlement with TiVo and other one-time items.
Revenue rose 6 percent to $12.42 billion from $11.69 billion.
Analysts, on average, had expected revenue of $12.41 billion, according to a poll by FactSet.
The company predicted revenue growth in the coming quarter of 3-5 percent, while analysts had expected at least 5 percent. On the earnings conference call, CEO John Chambers blamed what he described as the economy's inconsistent rebound.
Cisco's performance is widely regarded as a bellwether for the technology industry. That's because the San Jose, California, company cuts a broad swath, selling routers, switches, software and services to corporate customers and government agencies.
The company's fell $2.63 , or nearly 10 percent, to $23.75 percent in extended trading after the results were released. The stock closed up 6 cents at $26.38 in the day's regular trading session.
Some of the biggest names in tech haven't wowed the market in the second quarter. Chipmaker Intel (INTC), another closely watched tech stock, also had a disappointing earnings report, as did software giant Microsoft (MSFT).
Meanwhile, a soft earnings report by retailing giant Macy's (M) suggested that consumers are behaving more cautiously. That helped send the broader market lower in Tuesday's trading session.