Cisco beats profit estimates, adds $15 billion to buyback
By Abhirup Roy
(Reuters) - Network equipment maker Cisco Systems Inc reported a bigger-than-expected quarterly profit, helped by higher demand for its routers and security products, and added $15 billion to its share buyback program.
The company's shares rose 5.1 percent in after-market trading on Wednesday.
The results were a bright sign for investors after several tech stocks with lofty valuations plunged in the past few days due to disappointing sales outlooks from LinkedIn Corp and Tableau Software.
Cisco is shifting to high-end switches and routers and investing in new products such as data analytics software and cloud-based tools for data centers.
Revenue in the company's routers business rose 5 percent to $1.85 billion in the second quarter ended Jan. 23, Cisco said.
Revenue in the switches business, the company's biggest, fell 4 percent to $3.48 billion.
Its security business, which offers firewall protection as well as intrusion detection and prevention systems, recorded an 11 percent rise in revenue to $462 million.
Cisco boosted its current share buyback plan of $97 billion, of which $16.9 billion was remaining, by $15 billion. Continued...