Summary
Cisco Systems, Inc. (CSCO) reported strong financial results for the first quarter of fiscal year 2007, ending October 28, 2006. Total net sales grew by a significant 24.9% year-over-year to $8.18 billion, driven by robust product sales growth of 26.4% to $6.94 billion, further bolstered by an 17.5% increase in service revenue to $1.24 billion. This growth was substantially influenced by the recent acquisition of Scientific-Atlanta, which contributed $584 million in net sales. Net income for the quarter rose to $1.61 billion, or $0.26 per diluted share, compared to $1.26 billion, or $0.20 per diluted share, in the prior year's quarter. The company also demonstrated strong operational cash flow generation of $2.27 billion. Cisco continued its commitment to shareholder returns, repurchasing $1.5 billion of its common stock during the quarter, as part of an authorized program totaling $40 billion plus an additional $7 billion authorized in November 2006. The company maintains a healthy balance sheet with $4.31 billion in cash and cash equivalents and substantial investments.
Key Highlights
- 1Total net sales increased 24.9% year-over-year to $8.18 billion.
- 2Net income grew to $1.61 billion ($0.26/share diluted) from $1.26 billion ($0.20/share diluted) in the prior year.
- 3Product sales saw a significant 26.4% increase to $6.94 billion.
- 4The acquisition of Scientific-Atlanta contributed $584 million in net sales and is expected to enhance video capabilities.
- 5Operating cash flow was strong at $2.27 billion.
- 6The company repurchased $1.5 billion of its common stock during the quarter.
- 7Cash and cash equivalents stood at $4.31 billion, with total investments reaching $15.21 billion.