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General

Cisco raises dividend as profits improve despite 4% fall in revenue

Thursday 13 February 2020 | 08:32 CET | News

Cisco reported revenues for its fiscal second quarter to January down 4 percent year-on-year to USD 12.0 billion, in line with its outlook. The company forecast a further decline of 1.5-3.5 percent in the current quarter. Profits were still higher in Q2, and Cisco raised its quarterly dividend by 3 percent to USD 0.36 per share.

The company's net profit improved 2 percent to USD 2.9 billion, after a 4 percent reduction in operating costs.  Adjusted EPS was up 5 percent to USD 0.77, at the high end of Cisco's guidance. Quarterly earnings are forecast at USD 0.62-0.67, or USD 0.79-0.81 on an adjusted basis in fiscal Q3. 

The drop in Q2 revenues was led by the Americas, down 5 percent, while sales in the EMEA region fell 3 percent, and APJC was down 1 percent. Product revenue fell 6 percent, with infrastructure platforms and applications each falling 8 percent, while security products still grew 9 percent. Service revenue increased 5 percent. 

Cisco reported operating cash flow stable year-on-year at USD 3.8 billion in the quarter. It also acquired 18 million of its own shares in the period in the ongoing buyback programme. 
Gross Margin --  On a GAAP basis, total gross margin, product gross margin, and service gross margin were 64.7%, 63.9%, and 66.6%, respectively, as compared with 62.5%, 61.0%, and 66.6%, respectively, in the second quarter of fiscal 2019.



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Categories: General
Companies: Cisco
Countries: World
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