Wednesday, February 13, 2013

Cisco Hits Revenue of $12.1 Billion, up 5%

Cisco reported record net sales of $12.1 billion for its second fiscal quarter.  Net income (GAAP) came in at $3.1 billion or $0.59 per share, beating market expectations.

"Cisco delivered record earnings per share this quarter and record revenue for the 8th quarter in a row in a challenging economic environment. We continue to drive the innovation, quality and leadership our customers expect, and we remain focused on consistent returns to our shareholders," said John Chambers, Cisco chairman and chief executive officer.

"In terms of the future, we are making solid progress towards our goal of becoming the #1 IT company in the world. As new markets grow and are created, such as the Internet of Everything, it's very easy to see how the intelligent network is at the center of that future."

On the earnings conference call, Cisco executives said the company is gaining traction in key transitions areas as data center, cloud, virtualization, mobility and video. Despite weak macro economics, the Cisco said it is executing well. The economic situation is especially soft in southern Europe.

Some highlights for the quarter:

  • Cisco noted positive improvements in enterprise sales in the U.S.
  • The gross margin remains steady at 62.3%
  • A decline in the routing segment was attributed to the challenging environment in Europe and China.
  • Cisco is seeing good momentum with its ASR 9000 edge routing platform.
  • Cisco paid a cash dividend of $0.14 per common share, or $743 million.
  • Cash and cash equivalents and investments were $46.4 billion at the end of the quarter.
  • Headcount was 73,482 at the end of the quarter, up from 63,870 a year ago.