On Wednesday, Cisco Systems Inc came up reporting its quarterly earnings which remained better-than-expected largely because of the strength gained by the company in its security and newer applications businesses and took not notice of impact on its networking gear business made by U.S.-China trade war.
The network gear maker also forecasted its third-quarter earnings which came above what analysts were estimating and not only announced rise in quarterly dividends but also announced a boost up of its program to buying the shares back.
For third-quarter, the company forecasted revenue in a range of between $12.96 billion and $13.21 billion at the growth rate of 4 percent to 6 percent, which beat the analysts expectation of $12.84 billion for the same.
In the second-quarter, revenue from its security business, which sells breach detection system and firewall protection, rose 18 percent to $658 million, while its application software business posted a 24 percent jump in sales to $1.47 billion.
Infrastructure platform business, which covers Cisco’s traditional business of routers and switches, also posted a rise of 4 percent in sales to $7.13 billion.
Total revenue, to which analysts’ had set a mark of $12.41 billion, came up rising at 4.7 percent to $12.45 billion.
After adjustments, earnings per share earnings of the company came to 73 cents which also beat the analyst estimates of 72 cents per share.
Trade war between the United States and China had increased the worries of investors about the company’s traditional business of selling routers and switches, especially because of the reason that some of these network equipments are made in China.
But the Chief Executive Chuck Robbins has brushed all these concerns aside by saying that company saw a steady demand during the whole quarter.
Robbins is leading the company since July 2015 and under his leadership company expanded its strategy from merely depending on the hardware to add cloud, cyber security and internet of things into its business.