Cisco Systems Inc (NASDAQ:CSCO) stock rose 7.70% (As on August 15, 11:23:20 AM UTC-4, Source: Google Finance) after the company gave a bullish revenue forecast for the current period thanks to a rebound in orders, but announced plans to cut thousands of jobs as part of a strategy shift. The workforce reduction isn’t about trying to boost profits, according to the company. Cisco needs to rapidly shift further into cybersecurity, cloud systems and artificial intelligence-related products, so it’s freeing up resources to do that. The cuts will reduce Cisco’s headcount of 90,400 by about 7%, indicating a loss of more than 6,300 jobs. The move will bring short-term costs of about $1 billion. Cisco reported a 14% gain in orders, a closely watched indicator of future revenue. Orders had been flat in the third quarter compared with a year earlier, excluding the newly acquired Splunk. Without Splunk, orders were up 6% in the fourth quarter.

Moreover, total subscription revenue of $27.4 billion including Splunk, representing 51% of total revenue. Total annualized recurring revenue (ARR) at $29.6 billion, including $4.3 billion from Splunk, up 22% year over year. Total software revenue at $18.4 billion, up 9% year over year, with software subscription revenue of $16.4 billion, up 15% year over year, making up 89% of total software revenue. Product revenue performance reflected growth in Security up 81% and Observability up 41%. Networking was down 28%. Product revenue in Collaboration was flat.

CSCO in the fourth quarter of FY 24 has reported the adjusted earnings per share of 87 cents, beating the analysts’ estimates for the adjusted earnings per share of 85 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue decline of 10 percent to $13.6 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $13.53 billion.

Additionally, the company has declared a quarterly dividend of $0.40 per common share to be paid on October 23, 2024, to all stockholders of record as of the close of business on October 2, 2024.

In the first quarter, profit will be 86 cents to 88 cents a share, excluding some items, Cisco said. That compares with a prediction of 85 cents. For Q1 FY 25, revenue is expected to be in the range of $13.65 billion to $13.85 billion

For fiscal 2025, revenue will range as high as $56.2 billion, a projection that is above Wall Street’s consensus estimate. FY 25 Non-GAAP Earnings per Share is expected to be in the range of $3.52 to $3.58.