Cisco Systems on Tuesday reported gains in revenue and net income for both its fiscal fourth quarter and fiscal year 2005, which ended July 30.
Revenue hit a record US$6.6 billion in the quarter, up more than 11 percent from the same quarter a year earlier, and its annual revenue came in at US$24.8 billion, a 12.5 percent increase from fiscal 2004. Pro forma net income for the quarter was US$1.6 billion, compared with US$1.5 billion for the fourth quarter of fiscal 2004.
The dominant networking vendor's earnings were US$0.24 per share, or US$0.25 per share excluding certain items. It met financial analysts' expectations for both revenue and earnings per share excluding the special items. Analysts polled by Thomson First Call had estimated Cisco's fourth-quarter revenue at US$6.56 billion and its earnings, excluding certain items, at US$0.25 per share.
During the quarter, Cisco unveiled a potentially major new technology, Application-Oriented Networking (AON), and made significant changes to its top management that took effect following the end of the fiscal year. Charles Giancarlo, formerly chief technology officer, replaced Mario Mazzola as chief development officer while Mazzola and two other veteran executives retired. Giancarlo also remains a senior vice president of Cisco and president of Cisco-Linksys, the company's small-business and home networking arm.
AON was announced at the company's Networkers conference in June by President and Chief Executive Officer John Chambers, who likened it to the introduction of the dial tone in telephone networks. It is designed to improve the way business transactions take place among multiple applications over a network, carrying out three core functions -- multiprotocol message handling, application security and visibility into network events. AON will be offered beginning later this year in modules for Cisco switches and routers, as well as in a stand-alone device for networks made up of other vendors' hardware, the company said in June.