Shares of Cisco Systems Inc. (NASDAQ:CSCO) fell nearly 7% after the market closed on Wednesday, as fourth-quarter revenue came in below estimates.
The networking-equipment maker reported net income of $1.94 billion, with earnings rising 74% to 33 cents a share, compared with $1.08 billion, or 19 cents a share, one year ago.
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Adjusted earnings improved to 43 cents a share, up from 31 cents.
Revenue rose 27% to $10.84 billion, up from year-ago sales of $8.54 billion. Gross margin fell to 62.7%, down from 64% in the year-ago quarter.
Analysts polled by Thomson Reuters had forecast earnings of 42 cents a share on revenue of $10.88 billion.
The company said it hired 2,000 workers in the fiscal fourth quarter. Chairman and chief executive John Chambers said the company closed the fiscal year in a “tremendous position of strength” as a result of its financial model.
“As we to continue to successfully grow our business and share of IT investments, our focus is squarely on helping our customers accelerate productivity and growth,” Chambers said. “We are very confident in our strategy, and will continue to aggressively move into new areas where the network is becoming the platform, and where our customers want us to invest and innovate."
Shares of Cisco fell 58 cents, or 2.4% on Wednesday, and were down another $1.64, or 6.91% in after-hours trading.