Goal
This article provides step by step instructions to help users to perform a factory reset on the Cisco 7940 and 7960 phone models.
Resolution/Steps
Unplug Ethernet & power cable (if applicable) from the back of the phone.
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Press and hold the # (Pound/Hashtag) key and plug the Ethernet & power cable back in.
*****Note:
Once the Headset, Mute & Speaker buttons flash in sequence it is safe to release the # (Pound/Hashtag) key and promptly enter the reset key sequence
Press in order 123456789*0# to begin the reset sequence. If entered correctly, it will ask if you would like to save the network config which you will select No (option 2) and it will then continue with the reset accordingly.

Additional Information
Remember to not perform this factory reset procedure on any phone that is not plugged in behind a CallTower ASA or CallTower managed circuit.
UPDATE 2022 by Frank Rusignuolo: The reason you do not want to do this is because the phone will lose configurations and you will have to have the customer work with you to manually enter the correct configurations. The ASA and Circuit hand the configurations to the phone, and thus, no need to worry. If the phone is plugged into an ASA or Circuit after factory reset, and it still isn't registering, it is time to look into the issue further.
Common Issues/Related Articles
Factory Reset:
7942 and 7962: Cisco - Phone: 7942 and 7962 Factory Reset Procedure
7945, 7965, and 7975: Cisco - Phone: 7945, 7965, 7975 Factory Reset Procedure
79XX Features:
