Cisco Systems reported quarterly revenue of $5.6 billion, a 21.7% increase year over year and a 4.1% increase quarter over quarter. Operating cash flow was: $2.4 billion and net income (GAAP) was $1.2 billion, or $0.17 per share, compared with $987 million or $0.14 per share for the same period last year and compared with $724 million or $0.10 per share for the preceding quarter.
"We are pleased to have achieved record earnings per share this quarter-marking our eighth consecutive quarter with pro forma net income exceeding $1 billion, and the strongest cash flow from operations in the company's history," said John Chambers, president and CEO, Cisco.
Some highlights:
- there was sequential order growth across all major product categories
- IP telephony is hot. During the quarter, Cisco shipped its 3 millionth phone. It took over 30 months to ship the first million phones, it took approximately 13 months to ship the next million phones, and in the last eight months, Cisco shipped its next million phones.
- John Chambers expects the company to be increasingly active in acquisitions and investments over the next year, noting that Cisco has identified a number of existing and adjacent markets that offer strong growth opportunities across the service provider, enterprise and consumer markets, that include voice, security and video
- Gross margins were 68.8%, compared to 70.8% for this time last year
- Of the $5.6 billion in total revenue, product sales represented $4.7 billion and services represented $890 million
- Revenue by category breaks down as follows: routers represent 23%, switches represent 41%, advanced technology represents 16%, other products represent 4% and services represent 16%
- Revenue by geography: U.S. sales represented 46% of revenues, EMEA represented 30%, Asia-Pac represented 10%, Japan represented 8% and rest-of-the-Americas represented 6%
- Cisco has $18.9 billion in cash and investments
- during the quarter, Cisco repurchased $3.0 billion of its own stock
