RPT-Cisco 3rd-quarter profits fall drastically
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SAN JOSE, Calif., May 8 (Reuters) - New Economy bellwether
Cisco Systems Inc. on Tuesday said its quarterly
profits fell drastically as it grappled with the slowing global
economy and flagging spending on telecommunication equipment.
The San Jose, California-based maker of gear that helps
power the Internet said its fiscal third-quarter profits before
one-time items slipped to $230 million, or 3 cents a share,
compared with pro forma net income of $1 billion, or 13 cents a
share, in the same period last year.
After an April earnings warning, analysts had cut their
expectations for Cisco to 2 cents a share, with a range of nil
to 4 cents, according to Thomson Financial/First Call. Before
the warning, analysts had expected a gain of 8 cents.
Revenues for the quarter ended April 28 fell 4 percent to
$4.73 billion from $4.93 billion last year.
Cisco said on April 16 its third-quarter earnings before
one-time items would be in the "very low" single-digit range
and that sales would fall 30 percent from $6.75 billion in the
second quarter. The company also said it plans to cut 8,500
jobs, or 17 percent of its work force, and take charges of as
much as $3.7 billion.
REUTERS
Rtr 16:30 05-08-01
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