Cisco beats estimates, boosts buyback program by $25 billion

Technology


(Reuters) – Cisco Systems Inc reported its first rise in quarterly revenue in more than two years, which also topped analysts’ estimates, as the network gear maker’s years-long efforts to transition to a software-focused company begins to take hold.

Shares of the Dow component rose 5.3 percent to $44.34 in after-market trading on Wednesday.

The company said its board raised its buyback program by $25 billion.

Revenue from its infrastructure platforms category, which includes switching, routing and data center businesses, rose 2 percent to $6.7 billion, beating analysts’ estimate of $6.6 billion, according to Thomson Reuters I/B/E/S.

Revenue from Cisco’s security business, which offers firewall protection and breach detection systems, rose 6 percent to $558 million, but missed analysts’ average estimate of $589.5 million.

The world’s largest network gear maker forecast third-quarter adjusted profit between 64 cents and 66 cents per share, compared with analysts’ estimate of 63 cents per share.

The company posted a net loss of $8.8 billion, or $1.78 per share, in the second quarter ended Jan. 27, compared with a profit of $2.3 billion, or 47 cents per share, a year earlier.

The loss was due to an $11.1 billion charge related to the recent changes to the U.S. tax law.

Excluding items, the company earned 63 cents per share.

Revenue rose 2.7 percent to $11.9 billion.

Analysts on average had expected Cisco to report a profit of 59 cents per share and revenue of $11.8 billion.

Reporting by Munsif Vengattil in Bengaluru; Editing by Sriraj Kalluvila



Source link

Products You May Like

Articles You May Like

Two Pennsylvania men due in court in quadruple murder case
Two weeks on, Hawaii residents look for
Markle
Michael Cohen seeks to keep Stormy Daniels
Back to work, Prince Harry and Meghan to delay honeymoon

Leave a Reply

Your email address will not be published. Required fields are marked *