Cisco profit beats on strength in security business | Reuters

(Reuters) - Cisco Systems Inc (CSCO.O) reported a better-than-expected quarterly profit on Wednesday, driven by gains from its newer businesses such as security, which more than offset the declines in its traditional switches and routers business. FILE PHOTO: A newly installed phone made by Cisco is shown in San Diego, California, U.S., April 17, 2017. REUTERS/Mike Blake/File PhotoThe world’s largest network gear maker forecast second-quarter adjusted profit between 58 cents to 60 cents per share, largely above analysts’ estimate of 58 cents, according to Thomson Reuters I/B/E/S. The company’s shares rose 3.2 percent to $35.20 after market. Revenue from Cisco’s security business — which offers firewall protection and breach detection systems — rose 8 percent to $585 million. Cisco has shifted its focus to newer high-growth areas such as security, Internet of Things and cloud computing like other legacy technology companies. The company’s net income rose to $2.39 billion, or 48 cents per share, in the first quarter ended Oct. 28, from $2.32 billion, or 46 cents per share, a year earlier. Excluding items, the company earned 61 cents per share. Revenue fell 1.7 percent to $12.14 billion. Analysts on average had expected Cisco to report a profit of 60 cents per share on revenue of $12.11 billion.

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