Published in News

Cisco misses current quarter revenue

by on18 May 2017

Will fire more workers and not those who got it in this mess

Cisco has widely missed what industry experts were expecting for its revenue and rather than sacking senior managers who have been leading the company down the toilet, it has decided to sack 1,100 more workers.

The world's largest networking gear maker has been trying to turn itself into a software-focused company, something attempted by HP with similar results.

Cisco said revenue for its fourth quarter to fall between four to six percent from a year earlier, implying a range of $11.88 billion-$12.13 billion. Wall Street had expected the company to trouser $12.51 billion.

Cisco said orders in its public-sector business, which includes sales to federal, state and local governments, fell four percent in the third quarter ended April 29.

Chief Executive Chuck Robbins admitted that it was a pretty significant stall right now with the lack of budget visibility.

Demand for Cisco's routers remained weak in the latest quarter, contributing to the company's sixth straight decline in revenue.

Revenue in its security business, which offers firewall protection and breach detection systems, rose nine per cent to $527 million, but missed analysts' estimate of $545.5 million.

The security business is set to receive help from a jump in spending by companies and governments following the recent global "ransomware" attack, according to some analysts. The company said it expected an adjusted profit of 60 cents-62 cents per share for the current quarter. Analysts on average were expecting a profit of 62 cents.

The company's net income rose to $2.52 billion, or 50 cents per share, in the third quarter ended April 29 from $2.35 billion, or 46 cents per share, a year earlier. Excluding items, the company earned 60 cents per share. Revenue fell 0.5 percent to $11.94 billion. Analysts on average had expected adjusted earnings of 58 cents per share and revenue of $11.89 billion.

Last modified on 18 May 2017
Rate this item
(0 votes)

Read more about: