Quarterly revenue
The fiscal year ended October 24th for the American network equipment manufacturer Cisco Systems Inc. decreased by 26% to $2.17 billion, compared to $2.93 billion in the same period a year earlier. The profit correction was $0.76 per share, compared to $0.84 per share in 2019.
According to a press release from Cisco, its revenue decreased by 9% to $11.93 billion compared to $13.16 billion for the same period a year earlier. The decline in Cisco revenue in annual terms was recorded for the fourth consecutive quarter.
Financial performance exceeded market expectations. Analysts interviewed by FactSet averaged adjusted earnings of $0.70 per share with revenues of $11.85 billion. The company itself projected adjusted earnings ranging from $0.69 to $0.71 per share with revenues of $11.71-11.97 billion.
Cisco's infrastructure platforms division, which includes switches and routers, reduced quarterly revenues by 16% to $6.34 billion with an expert consensus forecast of $6.45 billion.
The Application Engineering division's revenue decreased 8% to $1.38 billion, which was in line with the $1.4 billion forecast. At the same time, the Computer Security Software division's revenue increased 6% to $861 million, exceeding the analyst forecast of $855.8 million.
Cisco said that $602 million has been written off for restructuring and small expenses in 1stQ. The company also said it wanted to write off 298 million dollars this quarter.
The company expects the adjusted earnings in the second quarter to range from $0.74 to $0.76 per share. Revenue is expected to remain flat or decline 2% from $11.36 billion to $12.01 billion a year earlier.
Cisco also announced Thursday the appointment of Scott Herren as Chief Financial Officer (CFO). He will take up his duties on 18 December and replace Kelly Kramer in that role. Herren will take over as CFO at Autodesk Inc. from 2014.
Cisco shares gained 7.7% on Thursday's additional trading. Since the beginning of this year, the company's market value has fallen by 19.4% to $166 billion.
