The company's results provide some evidence that its efforts to cut costs and focus on higher-growth businesses are beginning to pay off, although it still faces challenges from a weak global economy and competition from rivals such as Hewlett-Packard Co.
For the fiscal first quarter ended Oct. 28, Cisco reported a net loss of $163 million, or 3 cents per share, compared with net income of $1.33 billion, or 25 cents per share, in the same period a year earlier.
Excluding items such as restructuring costs, Cisco earned 31 cents per share, compared with the average analyst estimate of 30 cents per share, according to Thomson Reuters I/B/E/S.
Revenue fell 7% to $10.4 billion, but beat the average analyst estimate of $10.2 billion.
The company said it expects revenue in the current quarter to rise 2%-4% year-over-year, which would translate to $10.6 billion to $10.8 billion. Analysts had expected $10.4 billion.
Cisco's results were helped by strong sales of its higher-end routers and switches, as well as its security and collaboration products. The company also saw growth in its emerging markets business.
"We saw a stabilization of our business in several key markets around the world, and an uptick in demand for our higher-end products and services," Chief Executive Officer John Chambers said in a statement.
However, Cisco's results were weighed down by weakness in its enterprise business, which sells products to large companies. Revenue in that segment fell 10%.
The company also faces increasing competition from rivals such as Hewlett-Packard Co., which is expanding its networking business, and from newer players such as Arista Networks Inc.
Cisco has been working to reduce costs by cutting jobs and consolidating its product lines. The company also made a number of acquisitions in recent months to boost its growth in areas such as security and collaboration.
Analysts said Cisco's results showed that its turnaround efforts are beginning to make progress, but that the company still faces challenges from the weak economy and competition.
"Cisco is still in the early stages of a turnaround, but the results were a step in the right direction," said Jim Suva, an analyst at Citigroup. "The company is starting to see some traction with its higher-end products and services, and it is making progress in reducing costs."
Cisco shares rose 6% to $21.60 in after-hours trading on Wednesday.
