LOS ANGELES (Reuters) - Cisco Systems Inc’s quarterly sales beat expectations, despite concerns about increasing competition and budget cuts among debt-burdened clients in the public sector.
“It looks like Cisco reported as we expected.
“That may be a little disappointing in that investors may have wanted them to say that things are improving.”
“The results were a little bit better than expected on the top line and also better on the bottom, with some help from a better tax rate. However, investors are looking at the gross margins, which declined sequentially.
He also noted that day sales outstanding, or the amount of time Cisco requires customers to pay their bills, had increased to 40 days from 38 days.
“It may mean that Cisco is trying to extend better terms to its customers as it tries to protect its market share.”
SIMON LEOPOLD, ANALYST, MORGAN, KEEGAN & CO
“Sales were a little bit better (than we expected) and also earnings per share. Don’t know how much of the upside comes from the research and development tax credit, that’s certainly been a helpful aspect.
On state of tech broadly: “Until we get guidance from the company, we don’t really know. That’s key to answering that question.”
Reporting by Sinead Carew in New York and Bill Rigby in Seattle