"Our outstanding Q2 results exceeded our expectations and we believe they provide a clear indication that we are entering the second phase of the economic recovery. During the quarter we saw dramatic across the board acceleration and sequential improvement in our business in almost all areas"
Cisco's Q2 results beat expectations, and the company's CEO discusses the results and the future of the company.
- Undeniable dramatic improvement never seen before
- Orders up 11% y.y
- US orders up 17% balanced across segments
- Top 3 quarters in history
"We are confident that our aggressive strategy of investing in the business during the downturn and our focus on innovation, operational excellence, and productivity are driving our momentum and growth in the market. We believe that we are extremely well-positioned—by geography, in our customer segments, and in our key product categories—as economies around the world continue to improve and our customers increase their technology investments."
"Our outstanding Q2 results exceeded our expectations and we believe they provide a clear indication that we are entering the second phase of the economic recovery. During the quarter we saw dramatic across the board acceleration and sequential improvement in our business in almost all areas," said John Chambers, chairman and chief executive officer, Cisco.
From a financial perspective, the quarter was very strong, well exceeding even our own optimistic expectations. In our opinion, the second quarter marked the second phase of the recovery, with additional across-the-board acceleration in almost all of our geographies and market segments.
Revenues of $9.8 billion, increasing 8 percent year-over-year, were dramatically above the high end of our expectations of an increase of 1 percent to 4 percent. Second-quarter revenues showed a 9 percent sequential increase over our first-quarter revenues, the highest fiscal first quarter-to-second quarter sequential increase I've seen in the last decade.
Cash generated from operations in the second quarter was approximately $2.5 billion, and we repurchased $1.5 billion of stock during the quarter under our repurchase program.
Product book to bill was approximately 1.
Services continued its strong growth, with year-over-year revenue growth of approximately 6 percent.