A FILE PHOTO of A visitor is using a mobile phone on the front panel of the Cisco booth at the Mobile World Congress in Barcelona, Spain, February 26, 2019. REUTERS/Rafael Marchante
(Reuters) – Cisco Systems Inc. edged past Wall Street’s estimates for its quarterly revenue and profit on Wednesday, as well as the growth in cyber-security ‘ unit helped offset the weakness in its routers and switches.
Sales in the security business, which is a firewall that offers protection, and a breach-detection systems has increased by 9% to $ 748 million in the second quarter, which ended Jan. 25, beating the estimates of $740.2 million.
Infrastructure and platform business, which is the company’s traditional business of supplying switches, and routers on an 8% decline in revenue to $6.53 billion. Analysts were expecting revenue of $ 6.61 billion.
The sales of application software for businesses, fell by 8% to $1.35 billion, missing estimates of $1.42 billion.
Cisco forecast adjusted earnings of 79 cents to 81 cents per share for the current quarter, the midpoint of which is in-line with the analysts estimate.
Sales were down 3.5% to $12 billion in the second quarter, but still the analysts ‘ estimate of $11.98 billion.
Excluding items, Cisco earned 77 cents per share, beating estimates of 76 cents.
The company’s shares fell 2% in extended trading.
Report by Ayanti Berra in Bengaluru; Editing by Anil D’silva