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Cisco reports slight fall in Q2 revenue

U.S. networking giant Cisco Systems Inc. said Wednesday that its sales revenue experienced a slight fall of 4 percent to hit 12 billion U.S. dollars in the second quarter (Q2) of 2020.

Cisco said quarterly sales dropped 400 million dollars from last year, but its net income rose 2 percent to 2.9 billion dollars on a generally accepted accounting principles (GAAP) basis, or 0.68 dollars per share, in the current quarter ended on Jan. 25, 2020.

"I am incredibly proud of the innovation our teams continue to drive," said Chairman and Chief Executive Officer of Cisco Chuck Robbins. "I am confident in our long-term growth opportunities as we help our customers build out the networks for the future."

However, Cisco, one of the world's biggest makers of routers, switches and other computer and networking products, had forecast last November a fall in its GAPP earnings per share (EPS) at between 0.61 dollars to 0.67 dollars due to a slowdown in tech spendings across the industry.

Cisco's sales in the Americas -- the company's biggest market, accounting for more than half its total revenue -- dropped 5 percent year-over-year in the quarter.

The company is expected to "experience some pause in customer spending related to the uncertainty in the global macro environment," Robbins told investors at a conference call on Wednesday.

"Going forward, we will continue to focus on developing groundbreaking technologies and building a new internet for the 5G era," he added.

The California-based company expected its revenues to decline between 1.5 percent to 3.5 percent year-over-year in the upcoming third quarter, with EPS forecast to range from 0.62 dollars to 0.67 dollars.

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