” src=”https://s.yimg.com/ny/api/res/1.2/HeC2.rK.IBiI1Jmcg1eYKQ–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY0MA–/https://media.zenfs.com/en/investopedia_245/4deaf5e3969b276bad82815b732c0575″ data-src=”https://s.yimg.com/ny/api/res/1.2/HeC2.rK.IBiI1Jmcg1eYKQ–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY0MA–/https://media.zenfs.com/en/investopedia_245/4deaf5e3969b276bad82815b732c0575″>
Posted inBusiness
Cisco’s Stock Rallied After It Announced Earnings — and More Layoffs
David Paul Morris / Bloomberg via Getty Images
Key Takeaways
-
Cisco is cutting 7% of its workforce, months after revealing a 5% cut in February.
-
The company’s fiscal fourth-quarter results beat revenue and earnings expectations.
-
The results were helped by Cisco’s $28 billion acquisition of cybersecurity firm Splunk in March.
Cisco Systems (CSCO) is cutting about 7% of its workforce as it pivots to higher-growth areas like cybersecurity and artificial intelligence (AI), the company announced in an SEC filing alongside its fiscal fourth-quarter results.
The move comes after the networking-equipment provider revealed a 5% cut in February that affected roughly 4,250 employees.
In its fiscal fourth quarter, Cisco posted revenue of $13.6 billion, down 10% year-over-year, and earnings per share (EPS) of $0.54, down 44%. The dips weren’t as bad as analysts had projected, though, per Visible Alpha.
The company projects fiscal 2025 revenue of $55 billion to $56.2 billion and EPS of $1.93 to $2.05. Analysts were looking for $55.6 billion and $2.30 per share, respectively.
Quarterly subscription revenue was $27.4 billion, including revenue from cybersecurity firm Splunk, which Cisco acquired for $28 billion in March. That amounted to more than half of the company’s total sales.
Shares of Cisco rose more than 5% in after-hours trading Wednesday after inching higher during the regular session.
Read the original article on Investopedia.
EMEA Tribune is not involved in this news article, it is taken from our partners and or from the News Agencies. Copyright and Credit go to the News Agencies, email news@emeatribune.com Follow our WhatsApp verified Channel
