Cisco announced layoffs of 6,000 — 8 percent of its workforce — and $700 million in pending restructuring charges for fiscal 2015 alongside a flat fourth-quarter earnings report delivered today.
Fourth-quarter revenues of $12.4 billion matched last year’s Q4. However, earnings per share showed growth at $0.55 non-GAAP, up from $0.52 at the same time in 2013. That beat the analyst consensus prediction of $0.53, as reported by Reuters and others. Revenues beat analysts’ estimates of $12.08 billion to $12.15 billion.
Ending on July 26, Cisco’s fourth quarter also saw $2.2 billion in net income, down from $2.3 billion in Q4 2013. However, non-GAAP findings show net income at $2.8 billion, the same as last year.
For fiscal year 2014, Cisco announced GAAP revenue of $47.1 billion, down three percent from last year’s $48.6 billon. GAAP net income also fell from 2013’s $10 billion, to $7.9 billion for FY 2014.
Recapping the quarter, Cisco mentioned continued efforts to implement the Application Centric Infrastructure (ACI) alongside the release of its Application Policy Infrastructure Controller (APIC), ACI fabric mode for Nexus 9000 Series switches, and new services for ACI. Also in an effort to boost Cisco’s budding network function virtualization (NFV) and software-defined networking (SDN) strategy, the quarter saw additions of Cisco’s WAN Automation Engine (WAE) to its Evolved Services Platform (ESP).
Cisco expects revenues for its first quarter, which ends in October, to be flat year-over-year. The company expects growth in the later three quarters of fiscal 2015 to make up a 4.4 percent revenue growth overall.
Rumors have been flying about CEO John Chambers’ retirement, with some analysts saying shares could be on the rise if Cisco finds new leadership. But Chambers made no mention of his exit (or lack thereof) on the earning’s call.