Cisco Revenue and Profit Grow

Network-Equipment Giant Sees its Growth Pace Ease, but Results Top Estimates:

Recent revenue growth of Cisco Systems Inc. has eased a bit "in its last quarter, but the results showed new business strategies giant network equipment are beginning to take hold.
The company based in California, in San Jose, said Wednesday its net profit rose 3.2% in its fiscal fourth quarter ended July 25, while total sales rose 3.9%. Cisco's results have exceeded expectations, and the company expects results for the current quarter, in line with Wall Street estimates.

Cisco shares rose 3.8% in after-hours trading to $ 28.97.Chief executive Chuck Robbins, that happened long ago, John Chambers, CEO last month, characterized the results as strong. "Over the past 90 days we have seen a contagious energy of Cisco," Robbins said during a conference call.

Cisco is the largest manufacturer of hardware that connects computers to each other and the Internet. The company often boom-bust cycles before other technology companies is experienced and was considered a model of the business issue.

After several lackluster quarters, the company began publishing revenue growth in the period ended in October 2014. In the quarter ended April 25, Cisco reported a 12% increase in earnings on an increase of 5% in revenue.

Cisco said the new products have stimulated an upturn in sales in the last quarter of switching and routing systems, two major hardware companies. The company said Wednesday that changing revenue grew 2% in the period, while sales rose 3% from the router.

Another long-term threat, some analysts believe, is a movement by business customers of Cisco software products that run on cheaper hardware. Mr. Robbins has said the rapid revenue growth in some lines of the latest hardware.

Cisco also reported progress in their sales and subscription-based software, particularly in the security services. "The threat of software defined networks did not affect the company to the extent that many had thought," said Bill Kreher, an analyst with Edward D. Jones & Co.

Mr. Robbins said Cisco will try to bulk up its product portfolio in the field of security and software companies that were based in part on acquisitions.Results also showed long-term problems in China may be slowing. The company faces stiff competition there from local suppliers, including Huawei Technologies Co., and was wounded on suspicion of links with the intelligence agencies of the United States.

Cisco said total sales in Asia-Pacific remained unchanged in the last quarter, with sales of China 3% compared with a decrease of 20% in the third quarter.Since take over, Mr. Robbins was moved to dispense low performance of the company to focus on those that show profitable growth. Last month, Cisco said it would sell from your TV set-top boxes for Technicolor for $ 600 million, a key part of the acquisition of a decade earlier $ 6.9 billion.

The decision to sell the business reflects the struggles of Cisco video equipment sold to cable operators, whose revenues have been falling lately. Cisco intends to stop selling video equipment used in homes, but will continue to sell the equipment used in the cable company facilities.The company said Wednesday that fourth-quarter revenue in its video service group was reduced 7%, compared with a decrease of 5% in the third quarter.

In all, Cisco reported earnings for the fourth fiscal quarter of $ 2.32 billion, or 45 cents per share, compared with the previous $ 2.25 billion to, or 43 cents per share year. Revenue rose to $ 12.36 billion from $ 12,840,000,000.

Excluding stock compensation and other items, Cisco said it would have earned 59 cents per share, versus 55 cents in the period last year. On that basis, analysts surveyed by Thomson Reuters expected earnings of 56 cents a share, on revenue of $ 12,650,000,000.The company expects revenue growth for the first fiscal quarter of between 2% and 4%, and adjusted earnings per share between 55 cents and 57 cents profit. Analysts polled by Thomson Reuters expected a 3% revenue growth and 56 cents of earnings.