Technology industry bellwether Cisco Systems has warned that company profit and sales in the current quarter may miss analysts' estimates.
The company expects profit to be 37 to 39 cents a share in the fourth fiscal quarter and sales to be between $10.8bn and $11.1bn, which are below average analyst predictions 41 cents profit and sales of $11.6bn.
By submitting your email address, you agree to receive emails regarding relevant topic offers from TechTarget and its partners. You can withdraw your consent at any time. Contact TechTarget at 275 Grove Street, Newton, MA.
Cisco chief executive John Chambers is restructuring the company and cutting back its consumer divisions after the company lost around $50bn in market value in the past year.
The fiscal fourth quarter is usually Cisco's strongest, but Chambers says the company will be distracted as it works through a more intense phase of reorganisation, according to the Financial Times.
Cisco recently appointed a chief operating officer, closed the Flip consumer video camera business and reshuffled the sales, engineering and services teams.
Chambers says he will cut jobs in anticipation of lower public-sector spending this quarter, according to the San Francisco Chronicle.
In result for the third fiscal quarter ended 30 April, profit was unchanged at 42 cents a share, which was above analysts' average prediction of 37 cents, and sales were up 4.8% to $10.87bn, which is was slightly above analysts' predictions of $10.86bn.
Cisco said during the quarter that one of its high-end routers, the CRS-3, is being adopted faster than the original CRS-1 platform with 80 customers in more than 30 countries.
Cisco has introduced new capabilities on the CRS-3 platform to expand its addressable market while reducing the cost for service providers to deliver packet-transport services.