Cisco Systems Inc. reported its second quarter earnings for its fiscal 2018 year for the period ended January 27, 2018. The company saw an improvement in revenue but also reported a net loss due to the new Tax Cuts and Jobs act. The company announced that it would be repatriating $67 billion in foreign profits back to the United States.
Looking at the numbers, Cisco is reporting revenue of $11.9 billion, up 3% from this time last year. As stated above, due to the Tax Cuts and Jobs act, the company paid a $1.1 billion charge resulting in a GAAP net loss of $8.8 billion or a loss of $1.78 earnings per share. For non-GAAP the company saw a net income of $3.1 billion or $0.63 diluted earnings per share. Cisco reported a total gross margin as 63.1% GAAP and 64.7% non-GAAP. Operating expenses for the quarter were $4.4 billion GAAP and $3.9 billion non-GAAP.
The company is increasing its stock repurchase program to the tune of $25 billion. Cisco also announced a quarterly cash dividend of $0.33 per common share to be paid on April 25, 2018, up 4 cents from the previous quarter.
Looking forward to next quarter, the company is expected a year-on-year revenue growth of 3-5%, a non-GAAP gross margin between 63-64%, a non-GAAP operating margin between 29.5-30.5%, a non-GAAP tax provision rate of 21%, and a non-GAAP EPS of $0.64 to $0.66.
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