Cisco Systems' Net Income Shrinks

Cisco Systems (NASDAQ: CSCO) announced its results for the fourth quarter on August 10, 2011. Let's take a closer look at the company's industry, financials, and commentary and see what steps you can take next.

Earnings and Revenue:
Wall Street watched as Cisco Systems topped expectations with its latest EPS and revenue figures. The company reported adjusted net income of 40 cents/share versus the 32 cents/share estimate and revenues of $11.2 billion versus the $10.97 billion estimate. Revenue climbed 3.3% from the same period last year.
Last quarter marks the third in a row in which the company's net income has fallen. Profits fell 17.6% in the third quarter and 17.9% in the second quarter. Cisco Systems' revenue has increased the past four quarters on a year-over-year basis.

Income:
For the year, Cisco Systems reported net income of $1.27/share. The company fell short of analysts projections of $1.34. According to the reported number, the company's income fell 36.3% from last year's levels.

Official Comment:
"We've made significant progress on our comprehensive action plan to position ourselves for our next stage of growth and profitability, while delivering solid financial results in Q4," said John Chambers, chairman and CEO, Cisco. "As we start our next fiscal year, you will see a very focused, agile, lean and aggressive company, that is laser focused on helping our customers use intelligent networks to transform their businesses."

Industry:
With price/earnings growth of 3.3%, Cisco Systems' industry, computer networks, is expanding. The company's EPS lags behind the industry average by 78.6%.

What to Do Next:
Now you can make a better-informed decision about whether to buy, sell or hold Cisco Systems shares until the next earnings announcement. Whatever you do, be sure to check back in with us before the company's next earnings release for a full prep sheet, just like the one we did here.

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