Cisco beats estimates with 2Q earnings, sales

NEW YORK — Cisco, the world's largest maker of computer networking equipment, on Wednesday said its net income jumped 44 percent in the latest quarter as it continues to put last year's slump behind it.

Cisco Systems Inc. has emerged leaner after a round of layoffs and a narrowing of its focus.

Net income was $2.2 billion, or 40 cents per share, in the fiscal second quarter, which ended Jan. 28. That compares with earnings of $1.5 billion, or 27 cents per share, a year ago.

Excluding the cost of stock-based compensation and some acquisition-related amortization, Cisco earned 47 cents per share. Analysts polled by FactSet had on average expected earnings of 43 cents per share on that basis.

Revenue was $11.5 billion, up 11 percent from $10.4 billion a year ago. Analysts expected $11.2 billion.

CEO John Chambers said he expects revenue in the just-started quarter to rise by 5 percent to 7 percent. Analysts polled by FactSet had been expecting an increase of 5 percent.

Cisco also said it will raise its quarterly dividend on the anniversary of its first dividend. Cisco paid a dividend of 6 cents a share April. The new dividend will be 8 cents per share, which works out to an annual yield of 1.6 percent at Wednesday's closing stock price.

Cisco shares rose 23 cents to close at $20.43. They added another 4 cents in after-hours trading.