Cisco beats analysts’ expectations


11 Aug 2011

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Networking equipment maker Cisco Systems Inc surpassed analysts’ expectations after it dropped jobs and businesses.

Cisco’s profit was US40 cents per share excluding some costs for Q4 of 2011. That marks a drop of 7pc compared to 43 cents during the same time last year. The number, however, beat analysts’ estimate of 38 cents on average, Bloomberg reported.

The company earned net sales of US$11.2bn, an increase of 3.3pc. Net income fell to US$1.23bn, or 22 cents a share, from US$1.94bn, or 33 cents, a year earlier.

Just last month, Cisco announced 6,500 job cuts in a move to increase profits and sell its set-top box manufacturing facility in Mexico to Foxconn Technology Group. The company has also closed its Flip video camera unit to focus on its main networking products.

"As we start our next fiscal year, you will see a very focused, agile, lean and aggressive company, that is laser focused on helping our customers use intelligent networks to transform their businesses," said John Chambers, chairman and CEO, Cisco.

"We’ve made significant progress on our comprehensive action plan to position ourselves for our next stage of growth and profitability, while delivering solid financial results in Q4," Chambers added.

"As we start our next fiscal year, you will see a very focused, agile, lean and aggressive company, that is laser focused on helping our customers use intelligent networks to transform their businesses."