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May 14, 2015

Cisco posts strong results in Q3 amid transitions

Chairman and CEO John Chambers will step down on 26 July.

By CBR Staff Writer

Cisco has reported a 5.1% increase in its revenue to $12.1bn for the third quarter ending 25 April 2015, compared to $11.5bn in the same period last year.

Net income rose 11.7% to $2.4bn, or $0.47 per share, in Q3, compared to $2.2bn, or $0.42 per share, in the year-ago quarter.

Product revenue grew 5.8% to $9.3bn in Q3, while service revenue increased 2.9% to $2.8bn.

Cisco chairman and CEO John Chambers, who will step down on 26 July, said: "Our vision and strategy are working and we are executing very well in a tough environment, as evidenced in our revenue growth, profitability, strong gross margins and cash generation."

During the third quarter, Cisco repurchased around 35 million shares of common stock for an aggregate purchase price of $1bn.

The remaining authorised amount for stock repurchases was about $5.3bn with no termination date.

Cisco executive vice president and CFO Kelly Kramer attributed the results to a good balance again across the company’s portfolio, and said earnings per share increased faster than revenue.

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"We continued our strong cash generation and returned another $2.1 billion to our shareholders."

Last month, Cisco acquired Embrane, which provides lifecycle-management platform for application-centric network services.

The company has recently unveiled plans to buy Tropo to ease communication integration within cloud applications.

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