Cisco adds $15B to buyback plan; product sales growth slows sharply

|About: Cisco Systems, Inc. (CSCO)|By:, SA News Editor

Cisco (CSCO) is adding $15B to its buyback plan, raising the size of its available authorization to $16.1B. The increase follows a quarter in which Cisco spent $2B on buybacks, up from $1.2B in FQ4 and allowing EPS to beat estimates in spite of a revenue miss.

Also boosting EPS: Non-GAAP gross margin was 63%, above guidance of 61%-62%.

Product revenue (78% of total revenue) grew only 1% Y/Y in FQ1 after rising 6% in FQ4. Services revenue +4% vs. +6%.

R&D spend rose 20% Y/Y to $1.72B, as Cisco invests heavily in developing new data center switch and core router lines, among other products. Sales/marketing spend was roughly flat at $2.41B, no doubt thanks to recent job cuts.

CSCO -2.6% AH. CC about to start, guidance should be provided.

FQ1 results, PR