Company experienced continued weakness in the service provider market. Revenues for the July quarter is also expected to be flat. Analysts now expect April quarter earnings per share of 14 cents vs. previous expectation of 19 cents. Gross margin came in below expectation and management expects continued pressure on gross margin going forward. Company guided gross margin close to 60 percent vs. expectation of 62.5 percent.
Decrease is due to lower sales and higher inventory costs.
Cisco expects it operating costs to increase by 3.5 percent due to an increase in hiring, which the company already committed to before the hiring freeze. Volume was heavy with over 280 million shares trading. Any rebound at this point would be viewed within the context of its downtrend to relieve oversold condition rather than a change in trend. No copying or distribution is permitted. The risk of investing in stocks and options can be substantial.