Cisco beats revenue estimates; announces restructuring

Cisco Systems Inc beat first-quarter revenue estimates amid easing supply chain constraints and announced $600 million in severance and other charges related to a new restructuring, sending shares of the company up 5% in extended trading. The networking equipment maker also slightly raised its revenue and profit outlook for the year.

Cisco Systems Inc beat first-quarter revenue estimates amid easing supply chain constraints and announced $600 million in severance and other charges related to a new restructuring, sending shares of the company up 5% in extended trading.

The networking equipment maker also slightly raised its revenue and profit outlook for the year. Cisco did not detail how many jobs would be lost as part of the restructuring but said it would book the charges over the next few quarters, which included some costs related to downsizing its office space as more people work in a hybrid home-and-office model.

Easing supply chain snags and Cisco's recent investments in cloud offerings and targeted price hikes have helped the company improve its business and attract customers amid an economic slowdown. Cisco said it expects an annual revenue growth of 4.5% to 6.5%, and adjusted earnings between $3.51 and $3.58. It previously forecast revenue growth of 4% to 6% for the year and earnings of $3.49 to $3.56, excluding items.

The company's revenue was $13.63 billion in the first quarter, above analysts' estimates of $13.31 billion, according to Refinitiv data. Excluding items, Cisco earned 86 cents per share for the quarter.

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