Enterprise networking equipment maker Cisco has managed to meet Wall Street estimates for the third quarter but has warned of less than expected revenue and earnings in the current quarter.
The company, which is struggling to maintain a lead over Hewlett-Packard and Juniper Networks, reported revenue of $10.9 billion, a year on year increase of 5 percent.
Cisco’s net income, meanwhile, was reported at $1.8 billion or $0.33 per share. Cisco CEO John Chambers said that the company plans to make significant job cuts that would help it to lift its growth.
"This quarter played out as we expected," said John Chambers, chairman and CEO, Cisco, said in a statement.
"We have acknowledged our challenges. We know what we have to do. We have a clear game plan, and we are a company with a track record of market-shaping innovation. We thank our shareholders, employees, customers and partners as we transition to the next phase of Cisco." he added.
Chambers also lowered the forecast for the current quarter, informing that it expects only a 2 percent in revenue in the current quarter while analysis expected 7 to 8 percent growth. The announcement caused the shares to drop by 3 percent.