Cisco Has Fiscal 3rd-Qtr Loss on Charges; Revenue Drops 4.2%
By Scott Lanman
San Jose, California, May 8 (Bloomberg) -- Cisco Systems Inc., the No. 1 maker of computer-networking equipment, lost $2.69 billion in its fiscal third quarter on restructuring charges as revenue dropped 4.2 percent on a sudden plunge in demand.
The loss was 37 cents a share, compared with net income of $641 million, or 8 cents, a year earlier, the company said in a statement distributed by Business Wire. Excluding the charges and acquisition costs, profit would have been $230 million, or 3 cents a share, in the period ended April 28.
Sales fell to $4.73 billion, the first such drop since Cisco's initial public offering in 1990. On April 16, Cisco cautioned that revenue would slide 30 percent from the previous quarter because telecommunications companies and other corporations were buying less Internet gear amid a U.S. economic slump. Now investors want more details on Cisco's forecast for the rest of the year.
``My hope is that they can point to some signs of improvement,'' said Peter Conrad, who helps manage $3.5 billion at Kopp Investment Advisors in Edina, Minnesota, before results were released.
Per-share profit, excluding the items, was in line with the reduced 2-cents-a-share average estimate of analysts polled by First Call/Thomson Financial.
Cisco shares today rose $1.11 to $20.36 on the Nasdaq Stock Market for their highest close in seven weeks. They've dropped 47 percent this year, on track for their worst annual performance ever.
(Cisco scheduled a conference call for May 8 at 4:45 p.m. New York time to discuss the results. The dial-in number is 800-475- 0240 or 312-470-7480 outside the U.S. A replay will be available for one week starting at 7:30 p.m. and by dialing 800-925-0753, o 402-998-1647 outside the U.S.) |
