Internet equipment manufacturer Cisco today reported net profits of $2,926 million dollars in the first quarter of its fiscal year 2020, representing 17.5% less than the $3,549 million of the same period last year.
Between August and October, the multinational based in San Jose (California) invoiced 13,159 million dollars, a figure slightly higher than the 13,072 of the first three months of 2019, but an increase in restructuring costs and, above all, fiscal, caused profits to fall despite the increase in revenue.
For their part, Cisco shareholders received a net profit in this last period of 69 cents per share, compared to 78 cents in the first quarter of last year.
Earnings before interest and taxes for the technology company were $3,579 million and the company kept its long-term debt stable at $14,497 million.
By market segments, the “infrastructure platforms”, which include “routers” and other Internet devices, accounted for 7,538 million in sales, a decrease of 1%, while security products, one of the company’s strategic stakes, had a turnover of 815 million, a 22% increase.
“We had a solid quarter despite a difficult economic situation. We are focused on innovation, the transformation of our business and the willingness to exceed our customers’ expectations,” said Chuck Robbins, chief technology officer.
Cisco’s results did not convince investors on Wall Street and its shares were left at 5.08% to $46 per share in electronic transactions after the close of the New York stock markets.