Cisco Systems Ltd. thrilled investors with better-than-expected revenues and income in its first quarter earnings, only for that delight to quickly turn to despair as the company issued a somewhat gloomy forecast for the future.

First the good news – the company announced a net income of $2.4 billion, which translates to $0.48 cents per share. It also posted non-GAAP earnings of $0.59 per share on revenues of $12.7 billion, a four percent year-over-year increase.

Those results outperformed Wall Street analysts’ expectations of $0.56 per share in earnings and $12.65 billion in revenues, but shareholder’s smiles quickly faded when Cisco announced its second quarter guidance. According to CEO Chuck Robbins, the company is looking at Q2 earnings per share of between $0.53 and $0.55, which is lower than Wall Street’s expectations of $0.56 per share.

According to Robbins, the guidance “reflects lower than expected order growth in Q1, driven largely by the uncertainty of the macro environment and currency impacts.”

Despite this somewhat depressing prophecy, Robbins was upbeat about Q1 overall, describing it as “a very strong quarter” with growth driven by the company’s cloud and software strategies.

Cisco’s Q1 results come as the company closes in on a number of acquisitions in the data analytics, security services and video spheres. These include the German company ParStream, which has built a database that specializes in real-time analysis of large data sets, and Portcullis Computer Security Ltd., a U.K.-based consultancy firm.

These acquisitions will follow Cisco’s $635 million slurp of OpenDNS Inc., a security threat protection firm, which was concluded in Q1.

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