Cisco raises dividend after return to sales growth in January quarter

Galtero Lara
Febrero 15, 2018

"We continued to drive momentum in our intent-based networking portfolio and saw strength across the business", Robbins said.

Adoption has also been "fairly balanced across the geographic regions, probably pretty much in line with what percentage of the business they represent", he said. "From a segment perspective, the commercial marketplace has been a great adopter of the technology, and what I would tell you is that the enterprises have been evaluating it because it represents a different architectural approach with automation and analytics and security built into the network", he said.

Robbins said "we have more to bring" to web-scale customers like Google and Microsoft, which have previously partnered with Cisco. They need a unified, automated and scalable environment across their data centers, private clouds and public clouds.

After the close of trading Wednesday, Cisco reported fiscal second-quarter sales of $11.9 billion, a 3 percent increase from the $11.58 billion the networking equipment-maker reported a year ago.

"We wanted to re-accelerate the innovation in our core franchises and we wanted to begin to execute on this transition to more software, higher degrees of recurring revenue", Robbins said. This performance led to strong margins, solid cash flow, and double digit non-GAAP EPS growth.

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"We had a great quarter which demonstrates that our strategy is working".

For the three months ending 27 January, Cisco saw its revenue creep up three per cent year on year to $11.9bn. But the company swung to an $8.8 billion loss (-$1.78 a share) from a profit of $2.3 billion (47 cents a share).

With revenue growth of 3 percent, Cisco has finally ended its streak of two years straight of year-over-year revenue declines, while also continuing its pattern of beating expectations since Chuck Robbins took over as its CEO. Cisco's tax provision rate for the fiscal second quarter was 20 percent, excluding certain items, down from 22 percent one year earlier. Infrastructure platforms increased 2%.

Cisco recently acquired BroadSoft Inc. that offers cloud calling and contact centre solutions.

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