Companies

Cisco profit down due to issues with last year’s memory components

DPA Los Angeles | Updated on March 12, 2018

EW21_CISCO

Cisco’s second-quarter net income decreased by 54.5 per cent to $1.4 billion compared to $3.1 billion a year ago, the San Jose-based networking company said on Wednesday.

The company cited pre-tax charge of $655 million related to the expected cost of remediation of issues as a reason for the decline. It said the memory components dealt with certain products sold in the previous fiscal year.

Second-quarter revenue fell by 8 per cent to $11.2 billion compared to $12.1 billion in the same period a year earlier, according to the report.

Cisco announced a two-cent increase in its quarterly cash dividend to 19 cents per common share, the report said.

“We delivered the results we expected this quarter. I’m pleased with the progress we’ve made managing through the technology transitions of cloud, mobile, security and video,” said Chairman and Chief Executive John Chambers in a statement posted online.

“Our financials are strong and our strategy is solid. The major market transitions are networking centric and as the Internet of Everything becomes more important to business, cities and countries, Cisco is uniquely positioned to help our customers solve their biggest business problems,” he added.

Published on February 13, 2014

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