Cisco reports second quarter earnings

This accounts to US$0.26 per share, and non-GAAP net income of $1.9 billion or $0.32 per share.

According to John Chambers, chairman and chief executive officer for Cisco, the company showed solid financial strength during a period of significant economic challenge.

"We remain comfortable with our long-term vision and strategy as we move into new market adjacencies and prioritise our existing opportunities," he said.

"We intend to accelerate the alignment of our resources to prioritise future growth opportunities, gradually decrease our operating expenses, while building even stronger customer relationships to position Cisco for ongoing, long-term market leadership."

Net sales for both the first six months of fiscal 2009 and fiscal 2008 were US$19.4 billion.

Net income for the first six months of fiscal 2009, on a GAAP basis, was US$3.7 billion or US$0.63 per share, compared with US$4.3 billion or $0.68 per share for the first six months of fiscal 2008.

Non-GAAP net income for the first six months of fiscal 2009 was US$4.4 billion or US$0.74 per share, compared with US$4.9 billion or US$0.78 per share for the first six months of fiscal 2008.

"Despite a clearly challenging macro-economic environment, Cisco generated US$3.2 billion in cash flows from operations in our second quarter, resulting in total cash and investments of US$29.5 billion," said Frank Calderoni, chief financial officer, Cisco.

"I believe our business model and financial position provide us with two key capabilities: speed and flexibility. We believe we have been able to minimise risk to our business, while still positioning Cisco to take advantage of new opportunities."