Cisco profits fall 77 percent; releases weak Q3 results
Cisco Systems Inc. saw its net income drop 77 percent, or $770 million, during its third quarter, and showed a 4 percent decrease in net sales. Actual net loss was $2.69 billion or 37 cents a share, compared with actual net income of $641 million or 8 cents a share a year ago, it reports.
Sales reached $4.73 billion, compared with $4.93 billion last year and pro forma net income, excluding special charges, was $230 million compared with $1 billion a year ago.
Calling 2001's first four months "extremely challenging," President and CEO John Chambers said in a statement, "This may be the fastest deceleration any company of our size has ever experienced. We believe that the challenges we face are primarily based on macroeconomic and capital spending issues."
He also noted the "speed at which this new economy can move in both directions. Changes that used to take place over multiple quarters or even over years now take place within months. Its is now clear to us that the peaks in this new economy will be much higher and the valleys will be much lower, and the movement between will be much faster."
He adds that the long-term outlook for the new economy and Cisco's role in it hasn't changed.