From CRN: Cisco (NSDQ:CSCO) Wednesday warned investors that it expects revenue for its current fiscal quarter to slide between eight and 10 percent due to continued weakness within emerging markets and its service provider business.
"As we have always done, we commit to you to being transparent, and letting you, our shareholders, see the challenges and opportunities as we see them," said Cisco CEO John Chambers, speaking to investors during a conference call Wednesday. "We remain very confident in our long-term strategy and are committed to managing this business to make sure we continue to drive greater long-term value for our employees, customers, partners and shareholders."
Cisco shares plummeted more than 10 percent in after-hours trading Wednesday.
"I know from [our] meetings that you understand our strategy and where we can take this company," Chambers told shareholders on the call. "I also know that ... these transitions can create unwelcomed quarter-to-quarter volatility, and can be frustrating for longtime shareholders."
Cisco also said Wednesday that it plans to buy back an additional $15 billion in shares as part of its broader stock buyback program. The Cisco board had previously authorized up to $82 billion in stock repurchases.
Cisco attributed its bleak second-quarter outlook to continued sluggishness within its emerging markets and service provider businesses. In its first fiscal quarter, the results of which were also given Wednesday, Cisco said its emerging markets revenue was down 12 percent year-over-year, with the total revenue from its top-five emerging market countries -- Brazil, Mexico, India, China and Russia -- declining an even greater 21 percent.
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