Revenue, Income Slide In Cisco's Q2 2014
SAN JOSE, CA—Cisco today reported its second quarter results for the period ended January 25, 2014. Cisco reported second quarter revenue of $11.2 billion, net income on a generally accepted accounting principles (GAAP) basis of $1.4 billion or $0.27 per share, and non-GAAP net income of $2.5 billion or $0.47 per share.
"We delivered the results we expected this quarter. I'm pleased with the progress we've made managing through the technology transitions of cloud, mobile, security and video," stated chairman and CEO John Chambers. "Our financials are strong and our strategy is solid. The major market transitions are networking centric and as the Internet of Everything becomes more important to business, cities and countries, Cisco is uniquely positioned to help our customers solve their biggest business problems."
GAAP net income for the second quarter of fiscal 2014 included a pre-tax charge of $655 million related to the expected cost of remediation of issues with memory components in certain products sold in prior fiscal years. This charge was excluded from non-GAAP net income and earnings per share.
For the second quarter of fiscal 2013, GAAP net income and GAAP earnings per share include total tax benefits of $926 million or $0.17 per share, respectively, related to a tax settlement with the Internal Revenue Service (IRS) and the reinstatement of the U.S. federal research and development (R&D) tax credit on January 2, 2013.
Revenue for the first six months of fiscal 2014 was $23.2 billion, compared with $24.0 billion for the first six months of fiscal 2013. Net income for the first six months of fiscal 2014, on a GAAP basis, was $3.4 billion or $0.64 per share, compared with $5.2 billion or $0.98 per share for the first six months of fiscal 2013. Non-GAAP net income for the first six months of fiscal 2014 was $5.4 billion or $1.00 per share, compared with $5.3 billion or $0.99 per share for the first six months of fiscal 2013.
Cisco is also announcing that earlier today its Board of Directors declared a quarterly dividend of $0.19 per common share, a two-cent increase over the previous quarter's dividend, to be paid on April 23, 2014 to all shareholders of record as of the close of business on April 3, 2014. Future dividends will be subject to Board approval.
"We had a record quarter of returning $4.9 billion to our shareholders through our quarterly dividend of approximately $900 million and share repurchases of $4.0 billion," stated Frank Calderoni, executive vice president and chief financial officer. "Our financial strength gives us the confidence to provide a meaningful return to our shareholders, and I'm pleased we are increasing our quarterly dividend by 12 percent to $0.19 per share."
Cisco Systems Inc. (Nasdaq: CSCO)