Summary
It is not so hard to strong free cash flow from Cisco to generate strong cash balance and a dominant position in the markets for communications networks.Cisco makes the best of a difficult situation.We still prefer Microsoft and Apple as better ideas,all in all.It's hard not to like Cisco (NASDAQ: CSCO), strong free cash flow to generate the balance of the fixed panel and domain network communications market, but the results for the fourth fiscal quarter they were not great.
Cisco CEO John Chambers is the wool over your eyes do not pull everyone: Cisco makes the best of a difficult situation. Sales were flat on a year-on-year basis in the quarter,earnings per share came in about flat.GAAP net income fell from the time last year, but the company was able to publish (primarily to the repurchase of aggressive acts) its best quarter non-GAAP earnings per share in the story Cisco continues to generate a lot of free cash flow (3.3 billion dollars in the quarter), but the market environment remains undoubtedly difficult, especially in emerging markets.
The following transcript outlines the ongoing troubles:Fiscal year 2014 was a year with many big wins and several challenges. Our fiscal year began with the number of external headwinds including the federal government shutdown and the possibility of a U.S. default combined with significant slowdown in emerging markets.
Asia Pacific, Japan and China (region) was down 7% with China down 23% and India up 18% while the remaining emerging countries in Asia actually declined 34%. Those are countries that did not include China and India. Overall emerging countries within the three geographies declined this quarter by 9%.
We saw the impact of economic and geopolitical challenges in China, Brazil, Russia, Argentina, Turkey and Thailand and in a number of emerging markets that many of our other peers are seeing. These declines are reducing our growth by several points from what was expected and typically seen.
Although trends are best seen in Q2 and Q3 for emerging markets,lost in Q4 emerging markets, continued breakdown in double-digit declines and the following 15 emerging market countries went from a positive growth in the mid single digits in Q2 and Q3 to a decrease of 9% in Q4.Unfortunately,when we discovered that we see growth emerging markets again for several quarters and we believe that it could possibly get worse. Conference call.
The network communications giant said revenue would be flat to 1% on an annual basis in the current quarter and non-GAAP earnings per share in the range of $ 0.53 USD per share 0.51- the center be (slightly below consensus estimates). In the coming months, Cisco will help reduce 6,000 jobs, their goals at baseline, a reduction of about 8% of the workforce.
