Revenue in Cisco’s security business, which offers firewall protection as well as intrusion detection and prevention systems, rose 16 percent.
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Cisco Systems is laying off 5,500 employees as the internet gear maker scrambles to adapt to a technology upheaval that has triggered similar cutbacks to other storied tech companies.
Through the new Global Delivery Center in Pune, India which opened in June Cisco will strengthen its relationships with local clients and pursue digital transformation services opportunities in the country as well as globally with clients in the telco, financial services, consumer goods and the public sector.
“We are committed to making the necessary decisions to drive our future growth”, Robbins assured analysts during a Wednesday conference call. “Those businesses have great margins and it’s part of the overall transition”. Analysts had projected EPS ex items of 60 cents, on revenue of $12.57 billion, for the quarter ended July 30.
The company is also also betting on acquisitions to fast-track growth, and has made 10 acquisitions since Robbins began as CEO, according to FactSet StreetAccount data, from Internet-of-Things startup Jasper Technologies to cloud security provider CloudLock.
An earlier report suggested the firm may cut as many as 14,000 jobs.
The performance didn’t impress investors as Cisco’s stock shed 42 cents to $30.30 in extended trading after the numbers came out. In contrast, the Nasdaq Composite index had closed nearly flat, up only 0.03 percent.
US-based networking giant Cisco Systems will cut about 5,500 jobs, representing almost 7 per cent of its global workforce.
She added that about Dollars 325-400 million of the pre-tax charges (of the total up to USD 700 million) will be recognized during the first quarter of fiscal year 2017, with the remaining amount recognised during the rest of the fiscal.
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Sales in its biggest business unit, switching, increased 2 percent to $3.8 billion while routing, the second-largest revenue source, fell 6 percent to $1.9 billion. The company’s revenue was down -1.1 % compared to the same quarter last year.During the same quarter in the previous year, the company posted $0.54 EPS. While this isn’t good news, it is better than the 14,000 that were reported earlier today.
