Technology company Cisco Systems said its earnings and revenue grew in the latest quarter as demand for its computer networking equipment increased.
But chief executive John Chambers called the global economy "challenging and inconsistent" and the company said it is cutting about 4,000 jobs, or about 5% of its work force.
The company employs more than 200 people here, but it is not known where the cuts will be made or if workers here will be affected.
Cisco's revenue guidance for the current quarter was weaker than Wall Street expected. Cisco earned $2.23 billion, or 42 cents per share, in the three months which ended on July 27.
That was up from $1.92 billion, or 36 cents per share, a year earlier.
Adjusted earnings were 52 cents per share in the latest quarter, squeaking past Wall Street's expectations by a penny. This figure excludes charges stemming from a patent settlement with TiVo and other one-time items.
Quarterly revenues rose 6% to $12.42 billion from $11.69 billion. Analysts, on average, had expected revenue of $12.41 billion.
Cisco's performance is widely regarded as a bellwether for the technology industry. That is because the California-based company cuts a broad swath, selling routers, switches, software and services to corporate customers and government agencies.
In addition, Cisco's fiscal quarters end a month later than most other major technology companies, giving it additional time to assess economic conditions.
"Now, more than ever, our customers and our partners want Cisco's help navigating the inconsistent global landscape successfully," Chambers said in a statement.
For the current quarter, Cisco said it expects revenue to grow by 3-5% year-over-year. Analysts are expecting $12.72 billion, a 7% increase from last year's $11.9 billion.
