Cisco CEO Chuck Robbins attended the World Economic Forum in Davos, Switzerland on January 18, 2023.
Holly Adams | Bloomberg | Getty Images
Cisco The Internet company reported quarterly results that beat analysts’ expectations, sending its shares higher in after-hours trading on Wednesday.
Here are the key numbers:
- income: It was 87 cents per share, compared with 85 cents per share on an adjusted basis, according to LSEG.
- income: It was expected to be $13.64 billion, compared with expectations of $13.54 billion, according to LSEG.
Cisco said in a press release that fourth-quarter sales fell 10% from $15.2 billion a year earlier. This is the third consecutive quarter of revenue decline and the first time since 2020 that the company has reported a full fiscal year revenue decline.
This decline is expected to continue for some time. Cisco said it expected first-quarter revenue of $13.65 billion to $13.85 billion, down from $14.7 billion in the same period last year. Analysts expect the company’s revenue to reach $13.7 billion, according to LSEG.
Cisco at previous seasons The revenue decline stemmed from some customers installing equipment they had previously received.
Cisco’s core networking business, which includes switches and routers, has been in decline since large enterprises began migrating to the cloud years ago. The company has strengthened its software and securities businesses to diversify and bring in more recurring subscription revenue. In March, it closed $28 billion in financing Acquisition of SplunkIt is the largest deal to date involving data analytics and security technology.
Cisco shares were down 10% before the close this year, while the Nasdaq was up about 14%.
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