Cisco Drops as Profit Margin Falls Short of Estimates
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Cisco Systems Inc., the largest provider of networking equipment, fell the most in three months in Nasdaq trading after a report showed higher spending on new products eroded its fiscal second-quarter profitability.
Gross margin, the percentage of profit left after subtracting production costs, slid to 62.4 percent in the period that ended Jan. 29, San Jose, California-based Cisco said yesterday. That fell short of 63.3 percent, the average estimate of analysts surveyed by Bloomberg.