Cisco reports sales of USD 11.2 billion for its fiscal fourth quarter to 30 July, up 3.3 percent from USD 10.8 billion in the year-earlier period. Growth came mainly from services, up 12 percent to USD 2.27 billion in revenues, and 'new' products such as video, data centres and collaboration, up 7 percent to USD 3.46 billion, while router sales fell 2 percent to USD 1.73 billion and switch sales were down 4 percent to USD 3.44 billion. The gross margin increased to USD 6.8 billion from USD 6.7 billion. Net profit plunged 36.3 percent to USD 1.2 billion or USD 0.22 per share from USD 1.9 billion or USD 0.33 per share a year ago. The figure includes USD 772 million in restructuring charges for the company's earlier announced job cuts and changes in activity. Headcount was reduced to 71,825 employees at the end of the period, from 73,408 three months earlier. Cash and cash equivalents amounted to USD 7.6 billion at the end of the fourth quarter. Cisco said its book-to-bill ratio was "comfortably" above 1 in the quarter, with total product orders up 11 percent. Orders from service providers were up 19 percent year-on-year and enterprise orders grew 15 percent; only the consumer and public sector markets were weaker.
