Shares of networking and software giant Cisco (CSCO) fell 5.41% in early premarket Tuesday, February 15, after the network equipment company issued weaker-than-expected guidance and announced companywide layoffs. According to the freshly released report, Cisco earned an adjusted $0.87 per share on $12.79 billion in revenue during its fiscal Q2, including $9.23 billion from product revenues. Adjusted gross margins for the period came in at 66.7%. Also, the company ended the period with $35.7 billion in remaining performance obligations, up 12% YoY.

Looking ahead to its fiscal Q3, Cisco Systems expects earnings in the range of $0.84 to $0.86 per share, on revenue falling between $12.1 billion and $12.3 billion. Analysts had expected adjusted earnings of $0.92 per share on revenue of $13.09 billion.

Cisco also provided guidance for fiscal 2024, saying it expects adjusted earnings in a range of $3.68 to $3.74 per share and revenue in a range of $51.5 billion to $52.5 billion. Wall Street consensus expected full-year earnings of $3.86 per share on revenue of $54.41 billion.