Cisco has reported a 5pc increase of its Q3 profits from last year as long-standing CEO John Chambers prepares to stand down.
The California-based company posted a $2.4bn net income, or 47 cents per share, during the fiscal period when applying normal accounting techniques (GAAP). This marked a rise from $2.18bn, or 42 cents per share, a year ago.
Cisco’s profit on a non-GAAP, or adjusted basis, came to US$2.8bn during the quarter. The firm paid 21 cents per share in dividends and repurchased about 35m shares for $1bn at an average price of US$28.39 per share.
Revenue for the first nine months of fiscal 2015 was US$36.3bn, compared to US$34.8bn for the same period of fiscal 2014.
“Cisco is in a very strong position and we delivered another solid quarter,” said Chambers in a statement. “Our vision and strategy are working and we are executing very well in a tough environment, as evidenced in our revenue growth, profitability, strong gross margins and cash generation.”
Chambers is to step down after 20 years at the helm of the company, whose equipment largely powers the internet as we know it today. New CEO Chuck Robbins is a Cisco insider who previously held the role of senior vice-president of worldwide field operations.
“I am extremely honored and proud to have led Cisco for the last 20 years and to get us to this positive inflection point,” added Chambers. “We have a tremendous opportunity to extend our lead in the industry, and with Chuck Robbins as the CEO for Cisco’s next chapter, we have exactly the right leader to capture that opportunity. I could not be more confident in our future.”