Successfully targeting growth markets such as internet-connected devices and cyber security pushed sales up 3 per cent at Cisco (US:CSCO) in the year to 31 July. Coupled with improved productivity, that drove the networking giant's adjusted net income up 7 per cent to $12bn (£9.1bn).
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Cisco's focus on more profitable software and subscription-based products meant deferred revenues swelled 8 per cent to $16.5bn. Management intends to slash global headcount by 7 per cent and plough the cost savings into developing new products and markets. Drexel Hamilton analysts expect EPS of $2.41 this financial year (FY2016:$2.36).
