Cisco Systems (NASDAQ:CSCO) announced on Wednesday that it earned $1.9 billion during its fiscal fourth quarter, up 56% from $1.2 billion in the same period last year.
The network equipment maker recorded revenue of $11.7 billion, up 4% from 2011, beating Wall Street, which was looking for $11.61 billion, Reuters noted.
Adjusted EPS, excluding special charges, was 47 cents. That topped analysts’ estimates of 45 cents a share.
The company also announced that it would raise its dividend by 75% to 14 cents a share in the current quarter. Cisco said it would return 50% of free cash flow to shareholders through a combination of share buybacks and dividends. Investors liked the news. Shares of Cisco rose more than 7% in early Thursday trading.
Cisco’s quarterly results benefited from a cost-cutting program, initiated last year, that is expected to lower expenses by $1 billion and reduce payroll by 15%. In July, the company announced 1,300 layoffs.
Officials said the sales environment in Europe remained challenging and would remain so for some time. They also anticipated weak spending on equipment in the U.S. Faced with lackluster economic conditions worldwide, Cisco expects its customers to be “conservative” with any IT purchases and in hiring new workers.