Cisco sees $268M net loss in Q102
Cisco Systems' first-quarter net loss plummeted to $268 million — a dramatic drop from its $798 million in net income a year ago. The company's revenue fell 32 percent, to $4.4 billion, from $6.5 billion a year ago.
The company doesn't, however, plan more layoffs, at least for now, says Cisco Senior VP and CFO Larry Carter in an interview. Cisco has cut its workforce by 20 percent since March and ended its first quarter of 2002 with 37,546 employees. Carter says the company exceeded its $1 billion expense reduction target and expects operating expenses to be flat or down for the next quarter. Cisco's operating expenses fell to $2.4 billion for the quarter, compared with $3.2 billion a year ago.
After excluding acquisition charges, payroll tax on stock option exercises, net gains or losses on investments and an excess inventory benefit, Cisco recorded a pro forma net income of $332 million, or 4 cents a share, compared with $1.4 billion, or 18 cents a share, a year ago.
Results include $189 million for the acquisitions of Allegro Systems Inc. and AuroraNetics Inc., as well as a one-time charge of $37 million for in-process R&D, the company says.
Cisco's gross margin reached $2.7 billion for the quarter, compared with $4.1 billion a year ago. It ended the quarter with $4.5 billion in cash and cash equivalents, down slightly from $4.9 billion at the end of its fourth quarter of 2001.
Carter says the company is gaining market share in high-end routing, the IP core and edge and in the VoIP markets. "We saw solid growth in the cable space, and we shipped our 200,000th upstream port," he says.