Cisco Tops Q4 Views

Cisco Systems, Inc. CSCO reported better-than-expected results for its fiscal fourth quarter on Wednesday. The San Jose, California-based company posted quarterly $2.32 billion, or $0.45 per share, compared to $2.25 billion, or $0.43 per share, in the year-ago period. Excluding items, its adjusted earnings climbed 7 percent to $0.59 per share. Its revenue climbed 4 percent year-over-year to $12.84 billion. However, analysts were expecting earnings of $0.56 per share on revenue of $12.66 billion. The average estimate among 119 Estimize users was for earnings of $0.57 per share and revenue of $12.69 billion. Its product revenue surged 4 percent, while service revenue also climbed 4 percent for the quarter. Americas revenue jumped 7 percent in the fourth quarter, while revenue for both EMEA and APJC came in flat for the quarter. Non-GAAP operating expenses rose 1 percent to $4.2 billion, while non-GAAP operating income gained 9 percent to $3.8 billion. "I'm stepping into the CEO role at an incredibly exciting time for Cisco. We closed out our fiscal year with record revenues and record non-GAAP EPS, for both Q4 and FY15. I'm particularly pleased with the strong growth of deferred revenue which shows we are very effectively driving our business to a more predictable software-based business model, at the same time as growing revenues and earnings," said Chuck Robbins, Cisco chief executive officer. Cisco expects Q1 adjusted earnings of $0.55 to $0.57 per share, on sales forecast for 2 percent to 4 percent year-over-year growth. Cisco shares rose 1.54 percent to $28.37 in the after-hours trading session.