Cisco Earnings Underwhelm

Cisco Systems (NASDAQ: CSCO  ) reported Q4 and FY 2013 earnings today, and Mr. Market is unimpressed. As of this writing, shares are down 4.3% in after-hours trading on news of Cisco's lackluster earnings.

On the top line, the company managed to push quarterly and annual revenue up 6% year over year, to $12.4 billion and $48.6 billion, respectively. But on the bottom line, Cisco didn't fare as well. GAAP earnings for Q4 clocked in at $0.42, $0.06 below 2012's fourth quarter and $0.09 below analyst expectations.

Despite the miss, Cisco Chairman and CEO John Chambers remained upbeat about his company's longer-term potential. He noted the company's record non-GAAP operating income, non-GAAP net income ($0.52 per share), and non-GAAP earnings, as well as Cisco's generation of $4 billion in operating cash flow in Q4.

"Now, more than ever, our customers and our partners want Cisco's help navigating the inconsistent global landscape successfully," Chambers said in a statement. "They recognize the benefit of a partner who is not only the leader in their product categories, but can bring technologies and solutions together in an architecture to lower operating costs, reduce time to results, and future-proof their investments."

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  • Report this Comment On August 14, 2013, at 5:55 PM, gskinner75006 wrote:

    Really? Net income rose $2.27 billion and you are only flushing 4,000 families down the toilet? Come on. You can do better then that! Let's roll 20,000 heads. Think big money! Next time Mr. Chambers, start with yourself and the rest of the sorry excuse for an executive team. There is no excuse for this.

  • Report this Comment On August 14, 2013, at 6:29 PM, OceanJackson wrote:

    It's always a sad day when people lose their jobs, and families are injured as a result.

    But I think that Cisco was bloated from a structural standpoint, and a decrease in headcount will increase efficiency, decrease bureaucracy, and make them a swifter, leaner team.

    But again, where all those people will go to find new work - it's a really tough situation.

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