Cisco reported its Q4 results after Wednesday’s close, beating analyst estimates despite realizing approximately $750 million in restructuring charges in the just-ended quarter. Earnings were $0.40 on revenue of $11.2 billion while analysts were expecting $0.38 per share on $10.97 billion. The results were solid, considering many expected a quiet report after Cisco had warned of government spending cuts since last year.
The companies' shares have been punished in a big selloff for an industry touted as high-growth because of the advent of multimedia streaming, smart phones and demand from China. The company has also been losing market shares to rivals Juniper (JNPR) and Hewlett-Packard (HPQ). Cisco is overhauling itself and cutting jobs as it tries to revive growth. In July, Cisco said it planned to cut 15% of its workforce and sell a set-top box factory in Mexico as part of an effort to slash annual expenses by $1 billion.
Commenting on Q4 results, CEO John Chambers said the company made significant progress on its comprehensive action plan to position itself for a next stage of growth and profitability, while delivering solid financial results. Cisco ended the quarter with cash and equivalents of $7.7 billion, plus investments of $37 billion, after buying back 95 million of its shares. The company will announce what’s ahead for fiscal Q1 as well as the details of how the various product groups performed in a conference call later on.
Cisco Systems (CSCO : NASDAQ : US$13.73), Net Change: -0.33, % Change: -2.31%, Volume: 131,324,640