Dallas, Texas 08/19/2013 (Financialstrend) – In recent times, Cisco Systems, Inc. (NASDAQ:CSCO) has witnessed a hike in the demands for its networking equipment henceforth, increasing the company’s earnings and revenue.
However, despite of positive returns, the company is all set to cut about 4000 jobs or about 5% of the workforce as the CEO John Chambers believes that the global economy is challenging and lacks consistency.
The company’s stock fell $2.51 or around 9.5 per cent, to $23.87 in the extended trade according to the reports.
In a period of three years that ended on 27th July, Cisco Systems has earned $2.27, which is higher in contrast to the last year’s figure f $1.92 billion.
The revenue has also witnessed a rise of 6% and according to a poll by Factset, the analysts anticipated an average revenue of $12.41 billion.
The product orders of Cisco have grown 4% year on year. The orders in America grew 5% while those in Asia tumbled by 3% due to economic challenges faced by the region. Europe has witnessed a 9% increase in the product orders.
According to the company officials, Cisco’s present position in the market has been consolidated.
Cisco Systems 4th Quarter Profit Beats
John Chambers, chairman of the board as well as the CEO of Cisco Systems talked about the Q4 profit and the company’s strategy to layoff on CNBC’s Squawk Box Thursday morning.
He talked about the announcement of the 10th quarter witnessing record revenues and also the 7th quarter where profits overweighed revenue. He also mentioned that the consensus with regards to the next quarter is yet to be reported.
Chambers strongly believes that the market has perhaps missed their reaction to the adjustment which accounts for some of the negative consequences prominent on Wall Street.
Cisco is also cutting on 5% of its workforce in lieu of the dynamic nature of the market.