Cisco beats Q2 expectations, issues dividend

The networking equipment maker's latest results beat expectations on strong sales.

(Image: Cisco via CNET)

Cisco ended Wednesday on a good note after it reported fiscal second quarter earnings.

The networking giant reported net income of $2.4 billion, or 46 cents per share (statement). Non-GAAP earnings were 53 cents per share on a revenue of $11.9 billion, up 7 percent year-over-year.

Wall Street was expecting earnings of 51 cents on revenue of $11.8 billion.

Cisco chief executive John Chambers praised how the company got the "best balance of growth" across its various geographic locations, products, and business units.

He added: "Our strong momentum is the direct result of how well we have managed our company transformation over the last three plus years and our leadership position in the key technology transitions of cloud, mobility, big data, security, collaboration, and the Internet of Everything. Every nation, every company, everything is becoming digitized and the network is at the center of this transformation."

Cisco will also give back investors 21 cents per share in a dividend, payable mid-April.

In other numbers, the company had $53 billion in cash and equivalents, up slightly on the first quarter.

For its fiscal third quarter earnings, Wall Street is again expecting earnings of 52 cents per share and just over $12 billion in revenue.

Cisco ($CCSO) closed the day down 1.5 percent.