Cisco revenue falls less than expected, outlook awaited

Cisco Systems Inc's quarterly revenue slid a less-than-expected 7 percent decline as the network gear maker struggles with sluggish emerging markets like China.The company reported revenue of USD 11.2 billion in its second fiscal quarter, down from USD 12.1 billion a year earlier. Wall Street on average expected Cisco to report of USD 11.03 billion, according to Thomson Reuters I/B/E/S.

Also read: IT head honchos speak at NASSCOM Leadership Summit Investors had braced for bad news since Cisco warned previously of a revenue decline in the quarter, blaming a widening boycott of US equipment after revelations of American spying efforts globally.Asia Pacific sales fell 4 percent to USD 1.8 billion in the fiscal second quarter ended January. But revenue in the Americas led declines, with a 9 percent fall in the quarter.Wall Street will now turn its attention to forecasts for the current quarter as well as more details on the business declines, to be revealed by the company on a conference call with analysts later on Wednesday."They put a pretty low bar for the second quarter. They reached their numbers on the reset. It shows the environment has stabilized," said Zeus Kerravalla at ZK research."I expect guidance to be moderate. The strong quarter is usually the fourth quarter and they have some product transitions to go through. I am curious to see how emerging markets did."In the second quarter, revenue from routers and switching equipment, which together make up slightly more than half of the company's overall revenue, both contracted more than 10 percent.Cisco reported non-GAAP earnings of 47 cents per share, a penny better than the 46 cents expected.Shares in the company slipped less than 1 percent to USD 22.70 in extended trade, from a USD 22.85 close on the Nasdaq.