Shares of Cisco Systems enjoyed a sharp rally Wednesday relief at night, after the company network equipment said it has resisted the weakening of the best global demand than expected in the last quarter and marked a significant redemption Actions.
The shares have risen nearly 10 percent in aftermarket operations in version numbers for its fiscal second quarter. It also provides the results for the current quarter were in line with expectations of most analysts.
Cisco shares had fallen 17 percent since the beginning of the year, almost twice the decline in the S & P 500 index, on fears that the global economic uncertainty and weak demand for telecommunications and cable companies will weigh on demand for its equipment.
Chuck Robbins, CEO, according to the results showed an improvement in the movement of Cisco in new growth markets, with sales of its software defined network equipment more than double the previous year and still currently running at an annualized rate of $ 2 billion.
The share price rebound also reflects a jump of 24 percent in the payment of a quarterly dividend Cisco's shareholders, as well as the authorization of the Board to repurchase up to $ 15 billion of shares indefinitely . The announcement was made in a potential increase in the repurchase rate shares after $ 2.3 billion in share buybacks over the past six months.
Cisco reported revenue flat with the previous year, to $ 11.9 million, while pro forma earnings per share increased to 57 cents against 53 cents a year ago. Wall Street expected pro-forma 54 cents per share, on revenues of $ 11.76bn profit.
Investors have been concerned about the impact of a change in the secular technology as the rise of software-defined networks has opened the door to new competitors and threatened to eat into the margins of the Cisco router switching centers and companies high profit.
In the last period, however, Cisco reported a gross margin of 63.8 percent compared to 61.7 percent the previous year. Mr. Robbins attributed the margin expansion to the good results across the enterprise.
