Salas put growth of tax revenue in the second quarter in 3% to 5%, significantly lower than the 13% increase Wall Street had expected. Similarly, estimate the network equipment provider for the full-year growth of 9% to 12% was outside the 13% growth that analysts had forecast.
The shares fell 13% to $ 21.26 in after-hours trading.
"There were a couple of bags that had to fly through which quite frankly surprised us," Chambers told analysts during a conference call Wednesday.
Cisco level order was over $ 500 million below its original forecast, he added.
Cisco pessimistic set the tone with its earnings report, in which Chambers said in a statement that it sees "moderate capital spending in some areas of our business."
During the call, specifically pointed to a slowdown in public sector, with weaker spending U.S. government, Japan and Central Europe. The public sector represents nearly a quarter of their income.
He also said that North American suppliers of cable have also reduced their spending, pushed for a weaker housing market and cutbacks in consumer spending continued. Service providers also saw global challenges, he added.
Salas said that the weakness in these areas will continue over the coming months, but added that he expects short-term challenges of life.
the company's dominant position in network equipment - a must for all companies - gives a unique insight into the state of corporate spending. As a result, the comments of Chambers may have influence in the past causing swings in the broader market.
Cisco CFO Frank Calderoni said it expects its second-quarter earnings of 32 cents to 35 cents per share and said earnings excluding non-operating items would be 8 cents to 10 cents higher. He said the company after operating margins from 23% to 25% in the period.
Calderoni said he expects the long-term gross margins in the range of 64%. The company reported gross margins of 64.3% in the first quarter, in line with its forecasts.
Despite the weaker environment, Chambers said he expects to continue adding new jobs, assuming that the government continues to support policies that create more jobs private. He noted that Cisco added a net 1,100 jobs in the first quarter fiscal.inue to clamp down on Spending.
Chambers put STI fiscal second-quarter revenue Growth at 3% to 5%, Significantly Lower Than the 13% increase Had Wall Street expected. Likewise, the networking equipment provider's full-year Estimate for Growth of 9% to 12% of the WAS off Analysts Had 13% Growth Projected.
Shares retreat 13% to $ 21.26 in after-hours trading.
"There Were A couple of pockets we HAD to fly-through candidly remove Which surprised us," Chambers Analysts Told DURING a conference call on Wednesday.
Cisco's order level WAS more than $ 500 million initial forecast STI Below, I've added.
Cisco in September with the pessimistic tone STI earnings report, in Which Chambers in a statement Said That He Sees "moderate Capital Spending In Some Areas Of Our Business."
DURING the call, I specifically point-to a slowdown from the public sector, with Government Weaker Spending from the U.S., Japan and Central Europe. Represents the public sector STI Nearly a quarter of revenue.
He Also Said That the North American cable providers Also Have cut back on Spending, pressured by A Weak housing market and cutbacks in Consumer Spending Continued. The global service providers Also saw challenges, I added.
Chambers Warned That The Weakness In These areas will continue for the next Few Months, But I've added Expects The Challenge to Be short term in duration.
The company's dominant position in network equipment - a must for all businesses - Gives it a unique insight Into the state of corporate Spending. As a result, Chambers' comments dog hold a lot of influence, in the past Causing swings in the Broad Market.
Cisco Chief Financial Officer Frank Calderoni I Said Expects second-quarter earnings of 32 cents to 35 cents a share, and Noted That Excluding non-operating earnings items Would Be 8 cents to 10 cents even higher. He added the company post Would Operating margins of 23% to 25% in the period.
Said Calderoni have long-term Expects gross margins in the 64% range. The company posted gross margins of 64.3% in the first quarter, in line with forecast STI.
Weaker Despit the environment, I Said Chambers Expects to continue Adding new jobs, Assuming the Government Continues to Provide support with Policies That create more private jobs. Cisco Noted That He added a net 1.100 jobs in the fiscal first quarter.
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