Cisco Beats Street; Listwin Resigns
Aug 08, 2000 (Tech Web - CMP via COMTEX) -- Cisco Systems exceeded most Wall
Street estimates Tuesday in reporting fourth-quarter net income of 16 cents per
share on $5.7 billion in revenues.
Overall, net income for the quarter ended July 29 was $1.2 billion, versus $710
million in the year-ago quarter, an increase of 69 percent. The net income
figures exclude acquisition charges, payroll tax on stock option exercises, and
net gains on minority investments.
The earnings were reported after the market close. Shares of the technology
bellwether climbed 2 5/32 to 67 21/32 in after-hours trading. During regular
market trading, Cisco (stock: CSCO) lost 3/4 to 65 1/2.
The First Call/Thomson Financial consensus of 33 analysts forecast earnings of
15 cents per share, though some observers floated unofficial whisper numbers of
16 and 17 cents.
Cisco's sales soared rose 61 percent to $5.72 billion, versus the $3.56 billion
reported in the year-ago quarter. Revenues also rolled past the First Call
consensus estimate of $5.2 billion and some analysts' unofficial targets of $5.4
billion.
In a conference call, Cisco CEO John Chambers said, "Given our size, we're very
pleased with our results."
Profit margins slipped by 30 basis points compared with the third quarter, and
Chief Financial Officer Larry Carter said they could dip an additional 50 to 100
basis points in the next few quarters.
But Chambers attributed the decrease in margins to the company's success in
entering emerging markets like optical components and digital subscriber lines.
"In the short run, the more successful we are in new products ... the more
problems we'll have with margins," he said. "But this is a problem we'd like to
have."
During the call, Chambers also announced that his second-in-command, executive
vice president Don Listwin, is resigning to lead an unnamed company.
Listwin, who had been viewed as a potential successor to Chambers, was
responsible for Cisco's New World business strategy and led its service provider
and consumer businesses as well as corporate marketing.
Other executives at Cisco will take over Listwin's responsibilities, Chambers
said.
Reuters contributed to this report.
techweb.com
Copyright (C) 2000 CMP Media Inc.
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