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.
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.