Cisco and the C-word
The company suffers a huge hit to its stock price after detailing numerous challenges in its first quarter.
As I listened to the earnings call Wednesday, I was struck by how many times executives used the word "challenges." It was like every mention took the stock down a little further in after-hours trading.
Now the transcript is available on Seeking Alpha and I can get an official count. Number of times "challenges" was used: 26.
Government business was called out repeatedly as being down. Orders from the U.S. government dropped 25% year over year, and state government business fell 48% from the previous quarter. Post continues after video:
Momentum was similarly down in the Japanese government business and in orders from some European governments, executives said.
The public sector is a big chunk of Cisco's business -- about 22% of total product orders in the first quarter -- and the company said this area will continue to be "challenging" for several more quarters at least.
Cisco shares were down more than 15% in midday trading, pressuring other tech stocks and weighing on the overall market.
More from MSN Money:
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The solid report comes a month after the retailer closed all of its Canadian operations.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.