Cisco Q3 revenue down 5.5 %

Cisco has reported third quarter revenue of $11.5 billion for the quarter ended April 26, 2014, down 5.5% from a year earlier, net income on a generally accepted accounting principles (GAAP) basis of $2.2 billion or $0.42 per share, and non-GAAP net income of $2.6 billion or $0.51 per share.

On 2013, the company had reported third quarter net sales of $12.2 billion, up 5 percent over corresponding quarter last year.

"I'm pleased with our performance in Q3. Our financial results exceeded the guidance we provided last quarter as we demonstrated clear progress on returning to growth. The entire team is focused on moving Cisco forward aggressively and we remain confident in our long-term goal to be the #1 IT company," stated John Chambers, Cisco chairman and chief executive officer.

"Revenue for the first nine months of fiscal 2014 was $34.8 billion, compared with $36.2 billion for the first nine months of fiscal 2013. Net income for the first nine months of fiscal 2014, on a GAAP basis, was $5.6 billion or $1.06 per share, compared with $7.7 billion or $1.44 per share for the first nine months of fiscal 2013. Non-GAAP net income for the first nine months of fiscal 2014 was $8.0 billion or $1.51 per share, compared with $8.0 billion or $1.50 per share for the first nine months of fiscal 2013," a statement said.

" The company's cash flows from operations were $3.2 billion for the third quarter of fiscal 2014, compared with $2.9 billion for the second quarter of fiscal 2014, and compared with $3.1 billion for the third quarter of fiscal 2013," it said.

" Cisco's cash and cash equivalents and investments were $50.5 billion at the end of the third quarter of fiscal 2014, compared with $47.1 billion at the end of the second quarter of fiscal 2014, and compared with $50.6 billion at the end of the fourth quarter of fiscal 2013.

"The company repurchased approximately 90 million shares of common stock under the stock repurchase program at an average price of $22.24 per share for an aggregate purchase price of $2.0 billion during the third quarter of fiscal 2014. As of April 26, 2014, Cisco had repurchased and retired 4.2 billion shares of Cisco common stock at an average price of $20.56 per share for an aggregate purchase price of approximately $86.9 billion since the inception of the stock repurchase program. The remaining authorized amount for stock repurchases under this program as of April 26, 2014 was approximately $10.1 billion with no termination date," the company said in a statement.

"During the third quarter of fiscal 2014, Cisco paid a cash dividend of $0.19 per common share, or $974 million," it said.

"We executed well this quarter with a focus on operational excellence," stated Frank Calderoni, Cisco executive vice president and chief financial officer.

"Our strong and consistent cash generation demonstrates the value of our business model," said Calderoni.

In the meantime, The company announced plans to build the world's largest global Intercloud for the Internet of Everything (IoE) together with a set of partners, a distributed network and security architecture designed for high-value application workloads, real-time analytics, "near infinite" scalability and full compliance with local data sovereignty laws.

Plus, Cisco and AGT International announced a Smart City Global Strategic Alliance that plans to deliver the promise of the IoE through edge analytics and cloud technologies that dramatically change the way cities are managed and safeguarded.

However, Cisco selected Toronto as the location for one of four global Cisco Internet of Everything Innovation Centers, representing a planned investment of up to $100 million over 10 years.

On the other hand, Cisco's Visual Networking Index Global Mobile Data Traffic Forecast Update for 2013 to 2018 projects that worldwide mobile data traffic is expected to increase nearly 11-fold over the next four years and reach an annual run rate of 190 exabytes by 2018.

"Cisco announced it worked with Fira de Barcelona and the GSMA to successfully provide one of the world's largest carrier-grade Wi-Fi networks at the GSMA's Mobile World Congress 2014 at Fira Gran Via in Barcelona, underscoring the growing importance of Wi-Fi to cellular.," it said.

"Cisco, AT&T, GE, IBM and Intel announced the formation of the Industrial Internet Consortium^TM, an open membership group focused on breaking down the barriers of technology silos to support better access to big data with improved integration of the physical and digital worlds," the company said.

In India, Cisco in this quarter has been characterized by leadership change at the highest level. India head Jeff White has moved out and

Presently, Malkani is working as Vice President, Sales, Cisco India and SAARC. In this role, Malkani is responsible for Cisco's Enterprise, Public Sector and Service Provider business across the India & SAARC regions.

In addition to driving sales, his responsibility will be to drive alignment, increase customer relevance and enable a faster response to market transitions