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Cisco Systems posts weaker Q1 sales guidance

August 15, 2013

Cisco Systems, the world’s largest maker of networking equipment, achieved better-than-expected Q4 EPS of 52 cents, topping the consensus by one cent, but disappointed with its outlook. Net income rose 18% to $2.27bn and revenues advanced 6% to $12.4bn in the final quarter. Sales in Q1 will increase 3-5% to $12.2-12.5bn, at the lower end of analysts’ estimates. Cisco further announced to cut 4'000 jobs (around 5% of the workforce) due to margin pressure arising from strong competition. The shares dropped as much as 11% after market close.