Tomahawk, WI 11/14/2013 (BasicsMedia) –  Cisco Systems, Inc. (NASDAQ:CSCO) reported its Q1.14 data on Nov. 13, stating that it earned $2 billion in the quarter, reflecting per share earning of $0.37 a piece. This earning was down 4.6% from the last year’s same quarter. On non-GAAP basis, the San Jose-based company smashed Wall Street estimates to report $0.50 a share against $0.51 a share.

Moving on, the internet equipment giant generated $12.1 billion in revenue. That’s up 1.8% from the same quarter a year ago. However, it missed the quarter’s outlook because the CEO John Chamber had told investors that revenue would be up significantly about 3-5%. These disappointing figures did not cause much harm for the networking giant than the narrow forecast it issued for the next quarter. The stock fell more than 10% on the news that the company was expecting to take a beating from the lag in emerging markets.  Cisco now says that it’s looking for a loss of about eight and 10% in revenue in the next quarter. This came even as Wall Street issued an upbeat prediction that the company would increase its upcoming quarter revenue by 4%.

The networking company seems to be herding cats on how to deal with weak purchase power in the emerging markets. This market has been its main source of revenue as governments, institutions, businesses and individuals seek to improve their network infrastructure.

The San Jose-based company is now bracing for a bad quarter in which it says its set-top box is likely to be the biggest victim in the weak market. The CEO Chamber said that orders in the segment dropped significantly by about $600 to $700 million.  Now that a weaker quarter has been envisioned, Cisco is predicting its full year profit to come in the range of $1.95 and $2.05 a share. On the other hand, analysts are predicting about $2.10 per share, which is higher than the company’s highest boundary.

Cisco’s track record is commendable

Cisco cannot be judged harshly for delivering lackluster results for its first quarter of fiscal year 2014. It is fair to look at the networking company’s track record which actually speaks for itself. The company has for about seven consecutive quarters reported above Wall Street in revenue and earnings. The company has also been able to prepare the ground for its sharp take off when the economy turns bullish. Compared against peers in the industry, Cisco has been on a comfortable lead in major business segments.

The company is leading HP, EMC, IBM and other players in the industry. Moreover, its revenue growth and earnings exceed the industry average. What’s more, Cisco Systems, Inc. (NASDAQ:CSCO) is a growth and dividend company that has returned huge dollars to investors in dividends and buyback. The company’s roadmap is also very impressive. It thus goes without saying that the narrow outlook for the next quarter will be short-lived and that Cisco will be able to retrace its footing. The company deserves credit considering that despite the impact of the U.S. government shutdown for several weeks, it was still able to post revenue growth.

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