Cisco Systems Inc. reported strong earnings and profit for its fiscal Q4 and FY2014, beating Wall Street expectations by a few pennies for the quarter. But its shares and outlook continue to be weighed down by flat revenue growth, largely attributed to weakness in the emerging markets and service provider markets.
As reported earlier in the Rayno Report, Cisco said it will undergo a major restructuring in 2015, which will affect as many as 6,000 employees. However, there was no mention of the timing of Chairman and CEO John Chambers' retirement, which has been the subject of much chatter in the Cisco hallways, according to our sources.
Earnings came in slightly above expectations for the fourth quarter of its fiscal year, with the company reporting $.55 in non-GAAP earnings and $12.4 million in quarterly revenue. Consensus analyst estimates were $.53 in non-GAAP earnings and $12.1 million in revenue. Cisco's fiscal Q4 and fiscal year ended on July 26, 2014.
On an annual basis, Cisco reported $2.06 in non-GAAP earnings (after special charges) for its fiscal year 2014 and revenue of $47.1 billion, which came in 3% lower than the prior fiscal year. That represents its largest non-GAAP annual earnings ever, which generated cash flow of $12.3 billion and a shareholder dividend of $3.8 billion for the fiscal year.
Cisco projected revenue to be flat to up 1% on a year-to-year basis for the next quarter.