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7940 and 7960 Factory Reset Procedure

This article goes over how to do a factory reset on the Cisco 7940 and 7960 IP phones.
  1. Unplug the power cable from the ip phone and then plug it back in.
  2. Immediately press and hold # and when the Headset, Mute and Speaker buttons begin to flash in sequence, release the # button.
  3. At this point, you’ll notice the Headset, Mute and Speaker buttons flash in sequence, indicating that the ip phone is waiting for you to enter the reset sequence.
  4. Press 123456789*0#  to begin the reset. If you accidently press a key within the sequence twice e.g 1123456789*0#, the ip phone will still accept the code and begin the reset. If an invalid key is pressed, the phone will continue its normal startup procedure.
  5. Once the correct key sequence is entered, the ip phone will display the following prompt:  Keep network cfg? 1 = yes 2 = no 
  6. To maintain the current network configuration settings for the phone when the phone resets, press 1. To reset the network configuration settings when the phone resets, press 2. If you press another key or do not respond to this prompt within 60 seconds, the phone continues with its normal startup process and does not reset. Otherwise, the phone goes through the factory reset process.
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