Cisco Systems, Inc. or simply Cisco is a tech company that handles the development, manufacture and sale of networking hardware located in San Jose, California. Cisco is the largest networking company in the world with its subsidiaries including, Open DNS, Jasper and WebEx.
For its second quarter of 2016, Cisco reported earnings of 57 cents per share on $11.8 billion in revenue going against what analysts have predicted to be about 54 cents per share on revenue of $11.75 billion.
In a statement, Cisco executive vice president Kelly Kramer said "We are very confident in the strength of our business and future cash flows allowing the substantial increase of our dividend this quarter to 26 cents. We remain committed to our shareholders in delivering profitable growth and returning a minimum of 50 percent of our free cash flow back annually”.
On the third quarter, the networking company’s earnings were at 57 cents per share on revenue of $12 billion. Profit per share went up 6 percent year over year, while total sales dipped 1 percent from $12.14 billion in the same period.
Cisco reported earnings of 63 cents per share on $12.64 billion revenue exceeding predictions of analysts of 60 cents per share on $12.57 revenue.
Fiscal Year 2017
Cisco posted expected earnings of 42 to 47 cents per share, down 24 percent to 32 percent year-over-year for Q2 FY 2017.
“We executed well in Q1, delivering profitable growth, and saw strong adoption of our subscription-based and software offerings as we transition our business to a more recurring revenue model. We will invest in key growth areas and continue to focus on delivering shareholder value,” Kramer said.