There are three takeaways that Cisco’s CEO wants you to take away from its breakaway quarter. Shares of Cisco Systems fell initially fell in after hours trade when the company reported their second quarter results. However, they then hit rarely charted highs once the investors realized that it was actually a strong quarter.
Key Takeaways:
- Shares of Cisco Systems initially fell in after-hours trade when the company reported second-quarter results, but then hit rarely charted highs on Thursday once investors realized it was actually a strong quarter.
- It was clear to “Mad Money” host Jim Cramer that the quarter was initially misunderstood. Cisco did deliver a top and bottom line beat, but sales were down 2 percent year over year.
- Cramer clarified the results, stating that worries were based on the misperception that Cisco is still a networking equipment play. Deferred revenue is what is important to consider in the software business, and it was up 13 percent.
“As the infrastructure gets more distributed, over the next few years the network is actually going to be more important because you’ve got to apply security in the network, everything else in the network.”
