Cisco Q2 Profit Beats Estimates; Lifts Quarterly Dividend By 12% - Quick Facts

(RTTNews) - Cisco (CSCO) reported second-quarter net income of $1.43 billion or $0.27 per share, compared to $3.14 billion or $0.59 per share, last year. GAAP net income for the second quarter of fiscal 2014 included a pre-tax charge of $655 million related to the expected cost of remediation of issues with memory components in certain products sold in prior fiscal years. Non-GAAP net income was $2.52 billion or $0.47 per share, for the quarter.

For the second quarter of prior year, GAAP net income and GAAP earnings per share include total tax benefits of $926 million or $0.17 per share, respectively, related to a tax settlement with the Internal Revenue Service and the reinstatement of the U.S. federal research and development tax credit on January 2, 2013.

On average, 35 analysts polled by Thomson Reuters expected the company to report profit per share of $0.46 for the quarter. Analysts' estimates typically exclude special items.

Total revenue decreased to $11.15 billion, from $12.10 billion, a year ago. Analysts expected revenue of $11.03 billion for the quarter.

Cisco also announced its Board has declared a quarterly dividend of $0.19 per share, a two-cent increase over the previous quarter's dividend, to be paid on April 23, 2014 to all shareholders of record as of the close of business on April 3, 2014.