Cisco's fiscal Q4 earnings drop 36.6%

Thursday, August 11, 2011

Cisco's (Nasdaq: CSCO) net profit fell 36.3% year-on-year to US$1.2bn from US$1.9bn during the fourth quarter of fiscal 2011, ended July 30, according to financial results released by the company.

Net sales were up 3.3% during the quarter to US$11.2bn, from US$10.8bn in fiscal 4Q10. But Q4 net income included pretax charges of US$772mn, related to restructuring and other charges.

Fiscal year net income was down 16.4% to US$6.5bn from US$7.8bn.

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"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," said John Chambers, Cisco's chairman and CEO. "As we start our next fiscal year, you will see a very focused, agile, lean and aggressive company."

In July, Cisco decided to implement a plan that will see an annual operating expense cost reduction of US$1bn and around 6,500 employees leaving the company. This includes about 2,100 staff opting for early retirement.

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