SAN JOSE, Calif. ( TheStreet) -- Investors got further evidence of Cisco's (CSCO - Get Report) turnaround with the networking giant's robust second-quarter results, released after market close on Wednesday.
With its recent problems fading in the rearview mirror, Cisco reported revenue and earnings of $11.5 billion and 47 cents per share, respectively, up from $10.4 billion and 37 cents per share in the prior year's quarter. Analysts were looking for sales of $11.23 billion and earnings of 43 cents per share.
|Cisco CEO John Chambers.|
"We delivered strong performance this quarter with record revenue and earnings per share," said Cisco CEO John Chambers, in a statement. "We are executing well on our three-year plan to drive earnings faster than revenue."Chambers also said Cisco hit the $1 billion target for its expense-reduction plan a quarter early. The networking giant, which has recently come under fire from consumer advocate Ralph Nader for its dividend, announced plans to increase its quarterly payment from 6 cents to 8 cents per share. "We've consistently reiterated our commitment to using the cash generated in our business to drive shareholder value, and to do so with a combination of stock repurchases, dividends, M&A and R&D," explained Cisco CFO Frank Calderoni, in the company's statement. "This quarter, with the strength of our business, we're pleased to announce an increase in our dividend." Cisco also laid out its third-quarter guidance during a conference call to discuss the results, projecting year-over-year revenue growth between 5% and 7%. The tech giant's shares dipped 3 cents, or 0.15%, to $20.40 in extended trading on Wednesday. -- Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: firstname.lastname@example.org.