NEW YORK, Nov 17 ― Cisco Systems Inc beat first-quarter revenue estimates amid easing supply chain constraints and announced US$600 million (RM2.7 billion) in severance and other charges related to a new restructuring, sending shares of the company up 5 per cent in extended trading.
The networking equipment maker also slightly raised its revenue and profit outlook for the year.
Cisco did not detail how many jobs would be lost as part of the restructuring but said it would book the charges over the next few quarters, which included some costs related to downsizing its office space as more people work in a hybrid home-and-office model.
Easing supply chain snags and Cisco's recent investments in cloud offerings and targeted price hikes have helped the company improve its business and attract customers amid an economic slowdown.
Cisco said it expects an annual revenue growth of 4.5 per cent to 6.5 per cent, and adjusted earnings between US$3.51 and US$3.58. It previously forecast revenue growth of 4 per cent to 6 per cent for the year and earnings of US$3.49 to US$3.56, excluding items.
The company's revenue was US$13.63 billion in the first quarter, above analysts' estimates of US$13.31 billion, according to Refinitiv data.
Excluding items, Cisco earned 86 cents per share for the quarter. ― Reuters
