Cisco NZ back in black as sales and profit increase
Cisco Systems New Zealand has returned to the black, recording a profit for the latest financial year, ending 31 July 2016.
The vendor recorded profit after tax of $53,740 – a significant improvement on last year’s loss of $879,511.
The improved results followed a revenue increase of 3% to $23.0 million, from $22.2 million a year earlier, arresting a drop which had seen sales tumble 11% in 2015.
The FY2016 revenue included $22.97 million from services provided – up $855,000 on the previous year – and interest of $25,041, down significantly on 2015’s $113,260 of interest.
Slightly reduced expenses of $22.6 million (down from $23.0 million) – largely on the back of dramatically decreased marketing expenses which dropped from $300,568 to $53,340 – helped the company to a profit before tax of $405,833 – up from last year’s loss of $804,635 before tax.
Income tax expense however, was up from $74,876 to $352,093, chipping away at that profit.
Key management and director remuneration was down nearly 39% to $1.0 million, from $1.7 million a year earlier.
Globally, Cisco Systems recorded revenue of US$12.4 billion for the Q1 2017 quarter for growth of 1% year on year, with Cisco chief executive Chuck Robbins labelling it ‘a good quarter despite a challenging global business environment’.
He says the company has performed well in its ‘priority’ areas.
“We are leading our customers in their digital transition by providing them with highly secure, automated and intelligent solutions in the ways they want to consumer them,” Robbins says.
“Our innovation pipeline is robust and we are well positioned for the future.”
The vendor has indicated it expects a 2% to 4% decline year over year in revenue this financial year.