Cisco Profit Fell 11 Percent in Third Quarter
Cisco Systems' revenue for its fiscal third quarter grew less than 5 percent from a year earlier, while its earnings per share fell 11 percent, the company reported on Wednesday.
Sales for the quarter ended April 30 totaled US$10.9 billion, up 4.8 percent from $10.4 billion in last year's third quarter. The company reported net income of $1.8 billion, or $0.33 per share, down from $0.37 per share one year earlier.
Excluding certain items, Cisco's earnings were $0.42 per share, flat from a year earlier. That figure beat the average forecast of $0.37 per share from analysts polled by Thomson Reuters. Cisco's revenue roughly matched analysts' forecast of $10.86 billion.
Among the one-time items for the quarter were $120 million in asset impairments and restructuring costs. In addition, this year's third quarter had 13 weeks, compared with 14 weeks in last year's.
However, the report came at a difficult time for Cisco, which recently announced moves to streamline its business, such as closing down its Flip video camera division.
"This quarter played out as we expected," Chairman and CEO John Chambers said in a statement Wednesday. "We have acknowledged our challenges. We know what we have to do."