Home / News / Cisco optimistic as profits fall 46%
CEO John Chambers foresees reversal of fortunes

Cisco optimistic as profits fall 46%

Cisco Systems tried to maintain a bright outlook after reporting quarterly profits falling 46 per cent along with an 18 per cent decline in sales. 

The world’s largest manufacturer of network goods continues to struggle as customers ease on their spending, though CEO John Chambers witnessed "a number of positive signs" from the financial results.

The chief exec believes that the company’s financial performance for the quarter ending July 31 may be seen as the start of a reversal of fortunes. The profit sink was in fact better than what analysts had expected.

“We saw a number of positive signs this quarter in the economy and in our business," he said.

"If that continues for a few more quarters, we believe there is a good chance we will look back and see that the tipping point occurred in our business.”

Year-on-year quarterly revenues fell 18 per cent to $8.5 billion, with net profit sinking 46 per cent to about $1.1 billion.

Chambers foresees sales in the current quarter to outperform expectations, rising as much as 3 per cent from the period prior.

Investors were visibly not as optimistic. Shares on the same day fell 3.3 per cent in extended trading.

The group’s comprehensive cost-cutting measures – to axe 2,000 of its workforce – has now concluded.

Check Also

Commvault launches Metallic SaaS-based data protection solutions in EMEA 

Commvault’s Metallic Backup-as-a-Service (BaaS) solutions are now available across the EMEA region. Metallic’s enterprise-grade offerings …