Cisco, the computer networking giant, on Wednesday reported its second quarter results for the period ending Jan. 28, 2012. The company reported Q2 net sales of $11.5 billion; net income of $2.2 billion, or $0.40 per share; and non-GAAP net income of $2.6 billion, or $0.47 per share.
"We delivered strong performance this quarter with record revenue and earnings per share," said John Chambers, Cisco chairman and CEO. "We are executing well on our three-year plan to drive earnings faster than revenue. Our operational focus continues to yield positive results — we hit our billion-dollar expense reduction a quarter early — and our ongoing innovation enables our customers to solve their critical business needs."
Cisco exceeded its 2011 numbers across the board.
Net sales for the first six months of fiscal year 2012 were $1.6 billion higher than during the same period in FY 2011. Net income for the first six months of fiscal 2012, on a GAAP basis, was $500 million higher than it was for the first six months of fiscal 2011. Non-GAAP net income for the first six months of fiscal 2012 was $400 million more than it was for the first six months of fiscal 2011.
The company's performance also sparked an increase in shareholder dividends.
Cisco's board this week declared a quarterly dividend of $0.08 per common share, a two-cent increase over the previous quarter's dividend, to be paid on Apr. 25, 2012, to all shareholders.
"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," said Frank Calderoni, Cisco CFO. "Going forward, we will continue to focus on driving the greatest return for our investors."