Technology giant Cisco Systems, maker of equipment powering the Internet, last night reported a fourth-quarter net profit of just $7 million (€7.9 million), sinking 99 per cent form a year earlier as it posted sales on the low side of expectations.
Reeling from a global economic slowdown and turmoil among its corporate and telecommunications company customers, Cisco, whose shares slipped after the results, posted the first annual loss in its 11 years as a public company.
In a sign that the worst may not be over, it cautioned that sales for its current first quarter may drop by as much as 5 per cent from the fourth quarter's $4.3 million.
Fiscal fourth-quarter net income, including charges to cover the effect of acquisitions, employee stock options and restructuring costs, fell to $7 million, or nil cents a share, compared with a net profit of $796 million, or 11 cents a share, in the year-earlier quarter ending in July.
The San Jose, California based networking giant said it's operating earnings for the quarter ended July 28 were $163 million, or 2 cents a share, compared with $1.2 billion, or 16 cents a share, in the year-earlier quarter.
Analysts had expected the company to post pro forma operating earnings 2 cents a share, excluding charges, with a range of nil to 4 cents, according to market research firm Thomson Financial/First Call.
