Cisco Systems turned in a better-than-expected fiscal second quarter Wednesday, this despite continued struggles in its service provider segment, particularly in the area of video.
For the quarter, Cisco posted earnings of 53 cents per share on revenues of $11.94 billion, up 7% year-over-year. Analysts were expecting earnings of 51 cents on revenues of $11.8 billion, according to Reuters. Cisco shares were up $2.03 (7.54%) to $28.96 each in pre-market trading Thursday.
While segments such as data center and wireless each grew (up 40% and 18%, respectively), service provider-facing revenue was essentially flat – down 1%– but marked a significant improvement versus quarters. Service provider video revenues, at $776 million, were down 19% in the quarter.