Cisco profits down by third in Q4 2011
Profits drop 36.3% for Q4, but sales growth taken positively by markets
Cisco has reported a 36.3% drop in profits for its fiscal fourth quarter to end of July compared to the same quarter a year ago.
Profits were $1.2 billion for Q4, down from $1.9 billion in Q4 2010, with net sales up 3.3% year-on-year to $11.2 billion.
The full fiscal year results showed a similar picture. FY 2011 net income was down 16.4% from $7.4 billion in 2010 to $6.5 billion, with sales up 7.9% to $43.2 billion.
The company was hit be charges of $772m in Q4 and $923m in FY2011, mainly related to its major restructuring efforts. Cisco has announced plans to cut around 6,500 jobs worldwide, and has also closed its Flip video camera unit.
John Chambers, chairman and CEO, Cisco commented: "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. 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."
Sales results beat analyst expectations, causing Cisco stock to rise, the first post-results rise in six quarters.