-Strong Momentum and Results; Dividend Increase to $0.21
SAN JOSE, CA - Feb 11, 2015 - Cisco (NASDAQ: CSCO)
•Q2 Revenue: $11.9 billion (increase of 7% year over year)
•Q2 Earnings per Share: $0.46 GAAP; $0.53 non-GAAP

Cisco, the worldwide leader in networking that transforms how people connect, communicate and collaborate, today reported its second quarter results for the period ended January 24, 2015. Cisco reported second quarter revenue of $11.9 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.4 billion or $0.46 per share, and non-GAAP net income of $2.7 billion or $0.53 per share.

"Our Q2 results reflect continued progress as we transform Cisco to become the #1 IT company. In the quarter we grew revenues by 7%, with strong EPS growth, and saw the best balance of growth across all our geographies, products, and segments. We delivered this strong performance despite a volatile economic environment," stated Cisco chairman and CEO John Chambers.

"Our strong momentum is the direct result of how well we have managed our company transformation over the last three plus years and our leadership position in the key technology transitions of cloud, mobility, big data, security, collaboration, and the Internet of Everything. Every nation, every company, everything is becoming digitized and the network is at the center of this transformation."
GAAP Results
Q2 2015 Q2 2014 Vs. Q2 2014
Revenue $ 11.9 billion $ 11.2 billion 7.0 %
Net Income $ 2.4
billion $ 1.4 billion 67.7 %
Earnings per Share $ 0.46 $ 0.27 70.4 %

Non-GAAP Results
Q2 2015 Q2 2014 Vs. Q2 2014
Net Income $ 2.7 billion $ 2.5 billion 8.9 %
Earnings per Share $ 0.53 $ 0.47 12.8 %
Revenue for the first six months of fiscal 2015 was $24.2 billion, compared with $23.2 billion for the first six months of fiscal 2014. Net income for the first six months of fiscal 2015, on a GAAP basis, was $4.2 billion or $0.82 per share, compared with $3.4 billion or $0.64 per share for the first six months of fiscal 2014. Non-GAAP net income for the first six months of fiscal 2015 was $5.5 billion or $1.08 per share, compared with $5.4 billion or $1.00 per share for the first six months of fiscal 2014.

A reconciliation between net income on a GAAP basis and non-GAAP net income is provided in the table following the Consolidated Statements of Operations.

Cisco will discuss second quarter results and business outlook on a conference call and webcast at 1:30 p.m. Pacific Time today. Call information and related charts are available at http://investor.cisco.com.

Cisco Increases Quarterly Cash Dividend
Cisco is also announcing that earlier today its Board of Directors declared a quarterly dividend of $0.21 per common share, a two-cent increase over the previous quarter's dividend, to be paid on April 22, 2015 to all shareholders of record as of the close of business on April 2, 2015. Future dividends will be subject to Board approval.

"This was a good quarter to start as CFO," stated Kelly Kramer, EVP and CFO. "The momentum in the business feels good and we are excited about the opportunities ahead. Our revenue growth and increased EPS allows us to continue to give back to shareholders as we returned $2.2 billion to shareholders in Q2 and remain committed to returning at least 50% of our free cash flow annually. We are also pleased to increase our dividend to $0.21 this quarter, an 11% increase."

Other Financial Highlights
• Cash flows from operations were $2.9 billion for the second quarter of fiscal 2015, compared with $2.5 billion for the first quarter of fiscal 2015, and compared with $2.9 billion for the second quarter of fiscal 2014.
• Cash and cash equivalents and investments were $53.0 billion at the end of the second quarter of fiscal 2015, compared with $52.1 billion at the end of the first quarter of fiscal 2015, and compared with $52.1 billion at the end of the fourth quarter of fiscal 2014.
• During the second quarter of fiscal 2015, Cisco paid a cash dividend of $0.19 per common share, or $974 million.
• Cisco repurchased approximately 44 million shares of common stock under the stock repurchase program at an average price of $27.63 per share for an aggregate purchase price of $1.2 billion during the second quarter of fiscal 2015. As of January 24, 2015, Cisco had repurchased and retired 4.4 billion shares of Cisco common stock at an average price of $20.73 per share for an aggregate purchase price of approximately $90.7 billion since the inception of the stock repurchase program. The remaining authorized amount for stock repurchases under this program is approximately $6.3 billion with no termination date.

Internet of Everything
• The Metropolitan Regional Government of Santiago signed a collaboration agreement with Cisco Chile with the aim to turn Santiago into a "Smart City."
• Cisco announced the opening of a new Internet of Everything (IoE) Innovation Center in Tokyo.

Fast IT
• Cisco released the Cisco 2015 Annual Security Report that revealed a widening gap between perception and reality of cybersecurity readiness.
• The Cisco® Connected Analytics for the IoE was unveiled to help customers access, analyze and act on data -- from the cloud to the data center to the network's edge.
• Cisco and IBM announced the VersaStack solution that combines the innovation of the Cisco UCS® Integrated Infrastructure with the efficiency of the IBM Storwize storage system.
• The fourth annual Cisco Global Cloud Index (2013-2018) projected that over the next five years data center traffic will nearly triple, with cloud representing 76 percent of total data center traffic.
• Cisco Meraki® solutions will be used to offer Internet connectivity under Mexico Conectado, a program developed by the Mexican federal government that offers broadband connectivity to the population in public areas.
• Cisco announced that four new cloud providers from across Latin America have joined the Intercloud partner ecosystem.
• Cisco announced that beIN SPORTS selected the Cisco Videoscape™ TV platform to deliver advanced sports video experiences across more than 20 countries in the Middle East and North Africa.

Innovation
• Cisco completed the acquisition of Neohapsis to help deliver comprehensive services to help customers build the security capabilities required to remain secure and competitive in today's markets.
• Cisco and Charter Communications entered a strategic agreement to supply key Cisco products in support of Charter's next-generation video solution.
• In December 2014, Cisco celebrated 30 years of innovation.
• Cisco unveiled Project Squared, a business collaboration app that combines chat, audio, video, multi-party meetings and content sharing in a single experience that supports the demanding collaboration needs of modern teams.
• Cisco introduced the TelePresence™ IX5000 series, a world-class quality video collaboration experience for 6-to-18 people.
• Cisco was named one of the 50 most innovative companies by Boston Consulting Group and jumped to 14th from 46th last year.