Cisco reported second quarter revenue of $11.9 billion, up 2% over the same period last year. Net income (GAAP) was $3.1 billion or $0.62 per share, up 31% year-over-year.
"We delivered a strong Q2, and are managing the business extremely well in a challenging macro environment," said Chuck Robbins, Cisco chief executive officer. "We're managing the company on two fronts. We're focused on continued strong execution in the near term while investing in the innovation to lead our customers into the future."
Cisco's board of directors has also approved a $15 billion increase to the authorization of the stock repurchase program. Cisco's board had previously authorized up to $97 billion in stock repurchases.
Some highlights for the quarter:
- ACI is on a $2 billion annual run rate. Sales grew over 100% over the same quarter a year ago.
- Product revenue growth was led by Security which increased 11%, and NGN Routing and Collaboration which increased 5% and 3%, respectively. Wireless was flat.
- Switching declined 4% to $3.483 billion
- Data Center sales declined 3% to $822 million
- Service Provider sales increased 5% while Enterprise sales declined 2%
- There was double digit growth in cloud-based, SaaS businesses, including Webex, Meraki cloud networking, and security.
- Service revenue growth was 3%.
- Revenue by geographic segment was: Americas and EMEA each up 1%, and APJC up 11%.
- Gross Margin -- On a GAAP basis, total gross margin and product gross margin were at 62.3% and 61.3%, respectively.
- Employee headcount was 71,657, compared to 70,112 a year earlier.
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