Cisco Revenue Inched up in Q4
Cisco Systems posted a small sales gain of 4 percent and a larger boost in profit for its fiscal fourth quarter on Wednesday.
The company's revenue hit US$11.7 billion for the quarter ended July 12, up 4 percent from a year earlier. Its net income rose 56 percent from the year-earlier quarter, to $1.9 billion. Cisco earned $0.36 per share.
Not counting one-time items, the company recorded earnings per share of $0.47, just over the $0.46 forecast by analysts surveyed by Thomson Reuters. Quarterly revenue also slightly beat analysts' expectations of $11.7 billion.
Cisco is continuing to adjust its organization and product lines even after carrying out a broad reorganization announced last year, which cut $1 billion of annual expenses and more than 12,000 jobs. In May, the company killed its Cius tablet, and just last week it announced the elimination of about 1,300 more positions.
Cisco faces numerous challenges to go with its wide-ranging product portfolio. One of the largest is the transformation many observers expect with software-defined networking, which may leave some of Cisco's equipment out of the loop. During the quarter, the company announced its own network programmability architecture, called Cisco Open Network Environment. And just last week, the company disclosed it is developing a new, low-latency data-center switch, the Nexus 3500, probably aimed at rivals using Infiniband.
(More to come.)