Cisco's guidance for this quarter is far below expectations, and it has lowered its full-year guidance. After the market closed, its stock fell more than 10%. | Earnings Report

Cisco, the computer networking equipment giant, has intensified market concerns about weak corporate technology spending with its performance guidance.

After the US stock market closed on Wednesday, November 15, Cisco announced that its first fiscal quarter, ending on October 28, had slightly better-than-expected revenue and earnings per share (EPS).

• First quarter revenue was $14.67 billion, slightly higher than analysts' expectations of $14.63 billion.
• First quarter product revenue was $3.53 billion, slightly higher than analysts' expectations of $3.49 billion.
• First quarter annualized recurring revenue was $24.5 billion, slightly lower than analysts' expectations of $24.68 billion.
• First quarter adjusted gross margin was 67.1%, higher than analysts' expectations of 65.6%.
• First quarter remaining debt was $34.8 billion.

In terms of performance guidance, Cisco's EPS and revenue for the second quarter, which is the current quarter, are both significantly lower than expected:

• The adjusted EPS for the second quarter is expected to be $0.82 to $0.84, lower than analysts' expectations of $0.99.
• The second quarter revenue is expected to be $12.6 billion to $12.8 billion, lower than analysts' expectations of $14.2 billion.
• The adjusted gross margin for the second quarter is expected to be 65% to 66%, slightly lower than analysts' expectations of 65.6%.

At the same time, Cisco has lowered its annual guidance for this fiscal year:

• The adjusted EPS for the full year is expected to be $3.87 to $3.93, a decrease of $0.14 to $0.15 from the previous guidance range of $4.01 to $4.08, a decrease of 3.5% to 3.8%.
• The full year revenue is expected to be $53.8 billion to $55 billion, a decrease of $3.2 billion from the previous guidance range of $57 billion to $58.2 billion, a decrease of 5.5% to 5.6%, analysts' expectations are $57.84 billion.

After the financial report was released, Cisco's stock price initially rose 0.2% but then plunged after-hours, with a decline of more than 10%.