{"id":30043,"date":"2017-05-18T09:15:18","date_gmt":"2017-05-18T09:15:18","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=30043"},"modified":"2017-05-18T09:15:18","modified_gmt":"2017-05-18T09:15:18","slug":"cisco-revenue-forecast-disappoints-says-cut-1100-jobs","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/technology\/cisco-revenue-forecast-disappoints-says-cut-1100-jobs.html","title":{"rendered":"Cisco revenue forecast disappoints; says to cut 1,100 more jobs"},"content":{"rendered":"

\n\tCisco revenue forecast disappoints; says to cut 1,100 more jobs<\/span><\/span><\/strong><\/span>\n<\/p>\n

\n\tCisco revenue forecast disappoints; says to cut 1,100 more jobs:- Cisco Systems Inc (CSCO.O) forecast current-quarter revenue that widely missed analysts' estimates and said it would cut 1,100 more jobs, as the world's largest networking gear maker steps up efforts to transform into a software-focused company.<\/span><\/span><\/span>\n<\/p>\n

\n\tShares of the Dow component fell 8.2 percent to $31.05 in after-market trading on Wednesday. The stock had closed down 1.4 percent in regular trading, compared with the 1.78 percent slump in the index .DJI.<\/span><\/span><\/span>\n<\/p>\n

\n\tCisco, which announced in August that it would slash 5,500 jobs, said the new cuts would result in $150 million in additional pretax charges.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe company said on Wednesday it expected revenue for its fourth quarter to fall between 4-6 percent from a year earlier, implying a range of $11.88 billion-$12.13 billion.<\/span><\/span><\/span>\n<\/p>\n

\n\tAnalysts on average had expected revenue of $12.51 billion, according to Thomson Reuters I\/B\/E\/S.<\/span><\/span><\/span>\n<\/p>\n

\n\tCisco said orders in its public sector business, which includes sales to federal, state and local governments, fell 4 percent in the third quarter ended April 29.<\/span><\/span><\/span>\n<\/p>\n

\n\t"It's a pretty significant stall right now with the lack of budget visibility," Chief Executive Chuck Robbins said on an earnings call.<\/span><\/span><\/span>\n<\/p>\n

\n\tDemocrats and Republicans agreed earlier this month to provide around $1 trillion to keep the federal government funded through the end of the fiscal year on Sept. 30.<\/span><\/span><\/span>\n<\/p>\n

\n\tHowever, divisions between the parties are likely to flare up again when the White House unveils President Donald Trump's first full budget for the 2018 fiscal year on Tuesday.<\/span><\/span><\/span>\n<\/p>\n

\n\t"So, you've got some pretty large pieces of (the) business under duress," Needham & Co analyst Alex Henderson said.<\/span><\/span><\/span>\n<\/p>\n

\n\t"Some of it is probably around the lack of a budget agreement on extending the debt limits until fairly late in the quarter, some of it could be related to timing of programs – it's hard to pin that down."<\/span><\/span><\/span>\n<\/p>\n

\n\tDemand for Cisco's routers remained weak in the latest quarter, contributing to the company's sixth straight decline in revenue.<\/span><\/span><\/span>\n<\/p>\n

\n\tRevenue in its closely-watched security business, which offers firewall protection and breach detection systems, rose 9 percent to $527 million, but missed analysts' estimate of $545.5 million, according to financial data and analytics firm FactSet Street Account.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe security business is set to benefit from a likely jump in spending by companies and governments following the recent global "ransomware" attack, according to some analysts.<\/span><\/span><\/span>\n<\/p>\n

\n\tCisco, like other legacy technology players, is shifting its focus to high-growth areas such as security, the Internet of Things and cloud computing, amid intense competition from companies such as Huawei and Juniper Networks Inc (JNPR.N).<\/span><\/span><\/span>\n<\/p>\n

\n\tThe 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.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe 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.<\/span><\/span><\/span>\n<\/p>\n

\n\tExcluding items, the company earned 60 cents per share.<\/span><\/span><\/span>\n<\/p>\n

\n\tRevenue fell 0.5 percent to $11.94 billion.<\/span><\/span><\/span>\n<\/p>\n

\n\tAnalysts on average had expected adjusted earnings of 58 cents per share and revenue of $11.89 billion.<\/span><\/span><\/span>\n<\/p>\n

\n\tSource:- http:\/\/www.reuters.com\/article\/us-cisco-results-idUSKCN18D2LT<\/span><\/span><\/p>\n

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