Cisco Reports Strong 3rd Quarter

Company has revenue of $12.7 billion and earned 59 cents per share:

Cisco (NASDAQ: CSCO) announced its first quarter 2016 earnings on November 12, the leading provider of communications equipment for the technology sector showed revenues of $ 12.7 billion and earnings per share 59 cents for the quarter. Both revenue and EPS beat average analyst estimate for the quarter; But in comments profits, the company announced a slowdown in the pace of orders for the second quarter.

Cisco is the world leader in equipment and services for eight major sectors covering the whole spectrum of media communications services. For the first quarter, the company recorded a total revenue growth of 4% compared to the same quarter in adjusted EPS growth of 9%. Data center and collaboration reported the highest rates of growth in the first quarter data center increased by 24% and the collaboration of 17%.

In the first quarter of managing feedback, it revised downward their forecasts for the second quarter, citing a slower pace of global command macroeconomic headwinds as a key factor in the short term. For the second quarter, it now expects growth to be comparable quarterly revenue in the range of 0% to 2%, with adjusted EPS of 53 cents to 55 cents. This is lower than previous market consensus of 5.1% growth in sales and 56 cents EPS.

Despite slowing growth in the order, Cisco continued to capitalize on market opportunities for expansion in the first quarter, while at the same time realize the main gross margin levels for the industry. In the first quarter, Cisco completed three acquisitions adding OpenDNS for security software and services and Pawaa MaintenanceNet. In the recent announcements of the company also announced agreements with one acquisition Mainstream, Lancope Inc., Rake and ParStream. 1 Mainstream be integrated into the service provider Cisco business video. Rake Lancope and Cisco will add to the security of supply. ParStream with data analysis capabilities large, it will add to the amount of business software in the service of Cisco.

Growing from income generation and improved acquisition integrations, the company continues to maintain gross margins in the industry. For the first quarter, non-GAAP gross margin was 63.2%. The gross margin remains competitive with its peers in the technology industry with Microsoft (NASDAQ: MSFT) reported an overall gross margin of 65% and current Intel (NASDAQ: INTC) reported gross margin of 63%.

Overall, despite a slight slowdown in orders, Cisco reported strong results for the first quarter of 2016. The reputation of the company brand and market innovation remain key factors of growth factors of total revenues business for the company. Meanwhile, its aggressive acquisition strategy also continues to help take advantage of expansion opportunities in key markets value.

In discussions with CNBC following the earnings report the company, Chuck Robbins, CEO of Cisco, provides details on the results of the company's earnings and growth strategies.