Networking vendor, Cisco, has achieved a second quarter revenue of $US11.9 billion for the period ending January 23.
Its second quarter revenue amounted to $US11.8 billion, excluding $US93 million of revenue from the customer premises equipment portion of the service provider video connected devices business (SP Video CPE Business), that was divested during the second quarter on November 20, 2015.
Its net income, on a generally accepted accounting principles (GAAP) basis, was $US3.1 billion or $US0.62 per share, and non-GAAP net income of $US2.9 billion or $US0.57 per share.
Cisco CEO, Chuck Robbins, said the company delivered a strong Q2, and is managing the business extremely well in a challenging macro environment.
"We're managing the company on two fronts. We're focused on continued strong execution in the near term while investing in the innovation to lead our customers into the future," Robbins said.
The company said revenue from Asia-Pacific, Japan and China was up 11 per cent.
In addition, product revenue growth was led by Cisco Security, which increased 11 per cent, and NGN Routing and Collaboration (which increased five per cent and three per cent respectively). However, its revenue for wireless was flat while switching and datacentre declined four per cent and three per cent respectively.
Cisco's board of directors has also approved a $US15 billion increase to the authorisation of the stock repurchase program. Cisco's board had previously authorised up to $US97 billion in stock repurchases.
Cisco executive vice-president and chief financial officer, Kelly Kramer, said there is no fixed termination date for the repurchase program and that the remaining authorised amount for stock repurchases under this program, including the additional authorisation, is about $US16.9 billion.
"I'm happy with the progress we are making as we continue to shift our business model to more software, and recurring revenue. We are very confident in the strength of our business and we remain committed to our shareholders in delivering profitable growth and returning a minimum of 50 per cent of our free cash flow back annually."
Cisco estimates that GAAP EPS will be lower than non-GAAP EPS by $US0.08 to $US0.12 per share in the third quarter of fiscal 2016.