Cisco delivered in-line second quarter financial results Wednesday after the bell.
The tech giant reported a net loss of $8.8 billion, or $1.78 per share. Cisco said the dramatic net loss was due to an $11.1 billion charge related to recent US tax reform.
Non-GAAP earnings were 63 cents per share on a revenue of $11.9 billion, up 3 percent year over year. A year ago, Cisco earned 57 cents a share on sales of $11.6 billion.
Wall Street was looking for earnings of 59 cents per share with $11.81 billion in revenue. Cisco’s shares were up more than 5 percent after hours.
For the current quarter, Wall Street is looking for non-GAAP earnings of 63 cents per share with $12.13 billion in revenue. Cisco responded with a revenue outlook that ranges from a 3 percent to 5 percent increase, with EPS between 64 cents a share and 66 cents a share.
Cisco’s revenue by segment breaks revenue down in the following categories: infrastructure platforms, applications, security, services and other. Infrastructure platforms revenue was up 2 percent to $6.7 billion; applications revenue was up 6 percent to $1.2 billion; security revenue was up 6 percent to $558 million; and other products revenue was $273 million, down 10 percent.
“We had a great quarter which demonstrates that our strategy is working. Our business is growing, we have a fantastic innovation pipeline, our balance sheet is strong and we have a team that’s executing incredibly well,” said Cisco CEO Chuck Robbins. “The network is more critical to business success than ever, and our new intent-based networking portfolio has great momentum including the fastest ramping new product in our history.”