Cisco Systems Inc. reported its second quarter earnings for its fiscal 2018 year for the period ended January 27, 2018. The company saw an improvement in revenue but also reported a net loss due to the new Tax Cuts and Jobs act. The company announced that it would be repatriating $67 billion in foreign profits back to the United States.
Cisco Systems Inc. reported its second quarter earnings for its fiscal 2018 year for the period ended January 27, 2018. The company saw an improvement in revenue but also reported a net loss due to the new Tax Cuts and Jobs act. The company announced that it would be repatriating $67 billion in foreign profits back to the United States.
Looking at the numbers, Cisco is reporting revenue of $11.9 billion, up 3% from this time last year. As stated above, due to the Tax Cuts and Jobs act, the company paid a $1.1 billion charge resulting in a GAAP net loss of $8.8 billion or a loss of $1.78 earnings per share. For non-GAAP the company saw a net income of $3.1 billion or $0.63 diluted earnings per share. Cisco reported a total gross margin as 63.1% GAAP and 64.7% non-GAAP. Operating expenses for the quarter were $4.4 billion GAAP and $3.9 billion non-GAAP.
The company is increasing its stock repurchase program to the tune of $25 billion. Cisco also announced a quarterly cash dividend of $0.33 per common share to be paid on April 25, 2018, up 4 cents from the previous quarter.
Looking forward to next quarter, the company is expected a year-on-year revenue growth of 3-5%, a non-GAAP gross margin between 63-64%, a non-GAAP operating margin between 29.5-30.5%, a non-GAAP tax provision rate of 21%, and a non-GAAP EPS of $0.64 to $0.66.
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