Router and video infrastructure giant Cisco (NASDAQ:CSCO) posted better-than-expected quarterly numbers for the period ending October 24, its first fiscal of the year. Revenue fell 13% to $9 billion. EPS was $.39, down 19%. Cisco’s stock rose almost $1 to $24.17.
The company’s surprise announcement was that it will buy back $10 billion of stock. Cisco has as much M&A activity as any large tech company in the world. The idle cash being used for the buyback must not be needed for future acquisitions. Cisco’s board had previously authorized up to $62 billion in stock repurchases.
Gross margins for the period rose slightly to 65.2% from 64.7%. The company seemed pleased. “Cisco’s strong first quarter results represent two quarters of sequentially positive revenue growth and demonstrate our ability to execute on our innovation and operational excellence priorities,” said Frank Calderoni, Cisco chief financial officer.
Douglas A. McIntyre
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