Summary
Cisco Systems, Inc. reported its third-quarter fiscal year 2012 results, showcasing robust growth and improved profitability. Total net sales reached $11.59 billion, a 6.6% increase year-over-year, driven by a 5.0% rise in product sales and a significant 13.0% increase in service revenue. This growth was broad-based across geographic segments, with the Asia Pacific, Japan, and China (APJC) region showing particularly strong performance with a 24.1% increase in net product sales. The company also saw improvements in its operating margin, which rose to 23.7% from 20.1% in the prior year's quarter, reflecting strong sales execution, improved gross margins, and effective expense management. Diluted earnings per share increased by 21.2% to $0.40, outpacing revenue growth and demonstrating Cisco's ability to translate top-line growth into enhanced profitability. Financially, Cisco maintained a strong liquidity position, with cash, cash equivalents, and investments totaling $48.4 billion. The company generated substantial cash flow from operations, amounting to $8.4 billion for the first nine months of fiscal 2012. Cisco continued its commitment to returning capital to shareholders through dividends and share repurchases, paying $1.1 billion in dividends and repurchasing $2.6 billion of common stock during the nine-month period. The company also announced a definitive agreement to acquire NDS Group Limited for approximately $5 billion, signaling a strategic move to enhance its video software and content security offerings.
Financial Highlights
54 data points| Revenue | $11.59B |
| Cost of Revenue | $4.42B |
| Gross Profit | $7.17B |
| Operating Expenses | $4.42B |
| Operating Income | $2.75B |
| Interest Expense | $151.00M |
| Net Income | $2.17B |
| EPS (Basic) | $0.40 |
| EPS (Diluted) | $0.40 |
| Shares Outstanding (Basic) | 5.39B |
| Shares Outstanding (Diluted) | 5.46B |
Key Highlights
- 1Net sales increased by 6.6% year-over-year to $11.59 billion.
- 2Service revenue grew by 13.0%, significantly outpacing product sales growth.
- 3APJC geographic segment experienced strong growth of 24.1% in net product sales.
- 4Operating margin improved to 23.7% from 20.1% in the prior year quarter.
- 5Diluted earnings per share increased by 21.2% to $0.40.
- 6Company maintained a strong liquidity position with $48.4 billion in cash, cash equivalents, and investments.
- 7Announced acquisition of NDS Group Limited for approximately $5 billion to bolster video offerings.