John Chambers, president and CEO of Cisco Systems has forecasted flat to slightly increased revenues for Q1 2003. Chambers made his forcast as he released the company’s results for the Q4 2002. During Q4 Cisco generated revenues of $4.8 billion, an increase of 12% compared to the same period last year. Operating profit was $947.0 million, with net income $772.0 million.
For the fiscal year, ended July 31, 2002, Cisco generated revenues of $18.9 billion, a decline of 15.2% compared to last year. It posted a net profit of $1.9 billion compared to the $1.0 billion loss it had the previous year.
Despite its forecast of flat Q1 results, Chambers said that the company planned to remain focus on its ‘break away’ strategy, even though capital spending is unlikely to increase until customers gain confidence in their own markets picking up again.
In addition to unveiling Cisco’s financial results and forecasts, Chambers also announced that Larry Carter, the company’s CFO, planned to retire next year, in May, when he turns 60. The company will try to persuade him to stay, but will be looking for a replacement if unsuccessful.