These improvements boosted Cisco's operating margin up to 31.6%, topping last year's mark by 20 basis points. But the beat on both the top and bottom lines weren't enough to offset the projected declines in the second quarter. Not only did Cisco guide for fiscal second quarter revenue to decline between 2% to 4% versus estimates for 2% growth, the company also forecasted adjusted earnings per share to be in the range of 55 cents to 57 cents per share, below consensus estimates for 59 cents.

While the downbeat guidance seem discouraging, Cisco is known for issuing conservative, if not dreadful, outlooks. The result has been twelve straight quarters of earnings beats, including topping analysts EPS estimates by at least 2 cents in five straight quarters. In other words, under-promising to over-deliver is one of Cisco's many traits. And while the company knows its business, it also understands the unpredictable nature of its customers.