Cisco’s Strong Profit Lifts Shares 9%
(Reuters) – Network equipment maker Cisco Systems reported a bigger-than-expected quarterly profit, helped by higher demand for its routers and security products, and added $15 billion to its share buyback program.
The company’s shares rose 9.2% in after-market trading on Wednesday.
Cisco is shifting to high-end switches and routers and investing in new products such as data analytics software and cloud-based tools for data centers.
Revenue in the company’s routers business rose 5% to $1.85 billion in the second quarter ended Jan. 23, Cisco said.
Revenue in the switches business, the company’s biggest, fell 4% to $3.48 billion.
Security business revenue rose 11% to $462 million.
Cisco boosted its current share buyback plan of $97 billion, of which $16.9 billion was remaining, by $15 billion.
Net income rose to $3.1 billion, or 62 cents per share, from $2.40 billion, or 46 cents per share, a year earlier.
Excluding items, the company earned 57 cents per share, beating the average analyst estimate of 54 cents per share, according to Thomson Reuters I/B/E/S.
Revenue rose 2% to $11.8 billion, excluding revenue from the customer premises equipment portion of the service provider video connected devices business that was divested.
See original article on Fortune.com
Cisco Bets Big on Internet of Things. Now, Let's Ditch the Term
Cisco's John Chambers: The Big Topic Missing From The U.S. Presidential Debates
China Wants Microsoft to Explain Major Problems With Its Data
