Cisco's Earnings Plummet But Beats Street

Company says it is trying to rein in spending

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    NEWSLETTERS

    TK
    AP
    Cisco Systems has maintained the #6 spot for two years. CEO John Chambers makes sure employees are part of decision-making and has invested over $26 billion. Along with this, they have over 500 job openings despite the business cool down.

    Cisco Systems Inc. says earnings fell 46 percent in its latest quarter, but the profit comfortably beats Wall Street expectations.
         
    The company also says it's seeing signs that the worst is over.

    The world's largest maker of computer networking gear posted a profit of $1.1 billion, or 19 cents per share, for the fiscal fourth quarter, which ended July 25. That was down from $2 billion, or 33 cents per share, in the same quarter last year.

    Sales fell 18 percent to $8.5 billion.

    Excluding the cost of stock-based compensation and other items, Cisco's earnings are 31 cents per share. Analysts polled by Thomson Reuters were expecting earnings of 29 cents per share on $8.5 billion in revenue.

    Cisco shares were up about 3 percent in extended trading. They closed Wednesday at $22.17, down 1.2 percent. Get after-hour quotes for Cisco Systems here.

    Cisco has made an effort to rein in spending, doing to so rather abruptly after sales started declining in October. It froze hiring and said it would cut travel and other costs. Its goal has been to save $1 billion during the fiscal year.

    The company aimed to reduce its work force by 1,500 to 2,000 positions in the last half of the fiscal year, through a normal realignment of positions coupled with the hiring freeze.
     

    CNBC contributed to this report.