Boston, MA 02/21/2014 (wallstreetpr) – Cisco Systems, Inc. (NASDAQ:CSCO) seems to be feeling the real effects of unstable market conditions as its sales continue to slump amidst increased competition from other industry players. The company has not been enjoying its best of times in the market and as a result has been compared to the already ailing IBM which seem to be facing the same challenges.
Cisco Systems, Inc. (NASDAQ:CSCO)’s fourth quarter results beat consensus estimates coming in with earnings per share of $0.47 against consensus estimates of $0.46. Revenue for the quarter came in at $11.2 billion against consensus estimates of $170 million. A closer look at the result one would not miss to note that the total revenues was down by 8% compared to those reported for the same quarter a year ago. The hardware sector of the company was the one hard hit in the fourth quarter.
Cisco Systems, Inc. (NASDAQ:CSCO)’s net earnings for the fourth quarter dropped by 7% with gross margins also dropping by 19% due to a decrease in sales throughout the quarter. The company has opted to engage in cost cutting measures in a bid of trying to boost its revenue margins. Expenses for the fourth quarter reduced by 23% with amortization of intangible purchased assets also dropping by 40%.
Cisco Systems, Inc. (NASDAQ:CSCO) continues to perform poorly in emerging markets raising lots of concerns about its future. Emerging markets had been perceived by many analysts as the best solution to the challenges and competition the company was facing in the more developed markets. Cisco management has recently announced it expects to report declining sales in the current quarter signaling something is entirely a miss in the company. Cisco System continues to act like a long term Laggard with the shares having tacked on less than 6% over the past year.
Cisco Systems, Inc. (NASDAQ:CSCO) systems stock was unmoved on Thursday trading session, slightly moving up by 0.09% to close the day at $22.30
