Cisco (CSCO) uses its FQ2 report to announce a $0.02/share increase in its quarterly dividend to $0.19/share. Shares now sport a 3.3% yield.
Cisco, which added $15B to its buyback three months ago, also says it bought back $4B worth of shares (over 3% of outstanding shares) in FQ2 at an average price of $21.73. $2B was spent on buybacks in FQ1, and $1.2B in FQ4.
Product revenue (drives future services revenue) fell 11% Y/Y to $8.4B Services revenue rose 3% to $2.7B and contributed to the revenue beat.
Gross margin was 61.3%, -100 bps but in-line with guidance of 61%-62%. Job cuts led opex to fall 6% Y/Y to $4.28B.
FQ2 results, PR