Boston, MA 02/19/2014 (wallstreetpr) – Cisco systems, Inc., (NASDAQ:CSCO) posted its second quarter results that did not go well with analysts as they were mired with declining revenues setting a bad precedence for the upcoming quarter. The Company continues to face serious challenges in emerging markets that are dragging it down. Revenue for the second quarter declined across its major sectors in its key geographic regions with the management providing not so good guidance for the upcoming quarter, an indication something is not right in the company.
Cisco systems, Inc., (NASDAQ:CSCO) could perform better than expected if it can get a good grip of the emerging markets which seem to be its only remaining leverage. An 8% decline in revenue for the quarter was nothing the company had expected considering net income also fell by 54%. The company cited the decline in revenue to a onetime charge of $655 million that hit its cash balance. Cisco is also grappling with a decline of 8% on its earnings per share due to lower sales in its key sectors.
Asia regions continue to provide the biggest challenge, as orders in this regions for the quarter dropped by 5% with CSCO not planning to walk out of the markets any time soon. Revenues in the Asia-Pacific segment dropped by a high of 16% especially in its BRIC operations in Brazil India and China. The management expects the decline to continue in the third quarter with the company projecting 6%-8% decline in total sales
Its competitor Juniper on the other hand has been reporting positive results in the market with revenues increasing by 12% in the fourth quarter. Juniper’s success has been attributed to its excellent performance in Asia markets
Cisco systems, Inc., (NASDAQ:CSCO) trade marginally on Tuesday’s trading session going down by 0.66% to close the day at $22.41 a share.
