Cisco Systems, like other older, more established IT vendors who are treading financial water lately, turned in its Q2 2017 earnings and beat Wall Street expectations–just barely.
But it also had some bad news: The company also reported that it will have to trim an additional 1,100 employees as part of an extended restructuring plan. Cisco employs 71,959 total full-time employees worldwide.
The layoffs come in the wake of 5,500 job cuts, 7 percent of its workforce, that were announced last August.
Cisco posted adjusted earnings of 60 cents per share on revenue of $11.94 billion. This out-performed the 58 cents per share on $11.89 billion revenue projected by Thomson Reuters analysts.
The stock has remained steady. A year ago, it was selling at $27.97; it was trading at $33.82 on May 17.
In its guidance, Cisco said it expects revenues to drop 4 percent to 6 percent year-over-year in the fourth quarter. Analysts expected Cisco’s revenue to decline just 1 percent in the fourth quarter, and predicted a midpoint of 62 cents per share for earnings.
Cisco said it plans to utilize hundreds of millions of dollars worth of pretax charges related to its restructuring, which the company expects will end in the first quarter of the 2018 fiscal year.
The company has invested millions into acquisitions of companies that could help it capitalize on trends such as cloud computing, analytics and artificial intelligence. Cisco said a year ago it expects to reinvest the cost savings from its restructuring plan into those key priority areas.