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

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

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Comments (2)
  • combatcorpsmanVN
    , contributor
    Comments (1337) | Send Message
    $CSCO - I watched w/ interest Chambers interview on CNBC. I feel Chambers was forthright about the strengths and weakness in the Global macro environment at the present time. Nothing earth shattering in his outline of what he sees.


    I'm bullish on CSCO -- I believe the company is well positioned to benefit from The Cloud going forward.


    Not a bad Quarterly report which is a minor import to me -- I'm long CSCO and will continue to accumulate shares.
    13 Nov 2013, 04:42 PM Reply Like
  • jstratt
    , contributor
    Comments (3982) | Send Message
    A 16.1 bil stock buyback authorization will buy 14% of outstanding stock at todays close.
    14 Nov 2013, 05:34 PM Reply Like
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