Cisco beats Wall Street estimate, posts $3.1 billion revenue
updated 08:30 pm EST, Wed February 13, 2013
Nearly $1 billion from reintroduction of federal tax credit
Networking company Cisco today reported its second quarter results for the period that concluded on January 26, 2013. Cisco reported second quarter net sales of $12.1 billion, and net income of $3.1 billion or $0.59 per share -- beating Wall Street's conservative estimates handily. The company included total tax benefits of approximately $926 million related to a tax settlement with the Internal Revenue Service from a recent reinstatement of a research tax credit at the beginning of the year.
Net sales for the first six months of fiscal 2013 were $24.0 billion, compared with $22.8 billion for the first six months of fiscal 2012. Net income for the first six months of fiscal 2013, was $5.2 billion or $0.98 per share, compared with $4.0 billion or $0.73 per share for the first six months of fiscal year 2012.
During the second quarter of the company's fiscal year 2013, cash used for dividends and common stock repurchases under the stock repurchase program totaled approximately $1.2 billion. The company paid a cash dividend of $0.14 per common share, or $743 million, and repurchased 25 million shares for a purchase price of $500 million.
Highlights from the financial report include the company's purchase of data center infrastructure company Cloupia, cloud networking company Meraki, and its intent to divest itself of the Linksys product line selling it to Belkin.
Cisco shares closed up 0.8 percent at $21.14 in regular trading amidst heavy volume. In after-hours trading, the stock has climbed 1.4 percent at $21.38 in the after-hours reaction.
