Cisco System’s (NASDAQ:CSCO) reported in its fiscal Q1 earnings report that product revenues increased 3 percent year over year, while service revenue jumped 12 percent.
Gross margin declined to 62.3 percent from 64.3 percent in the previous year; however, it represented an increase from the fourth quarter’s 62.6 percent. Research and Development expenses dropped 7 percent from the previous quarter, with Selling, General and Administrative expense down 2 percent.
These declines come after July’s restructuring efforts that included company layoffs. Cisco’s (NASDAQ:CSCO) stock is up over 4% after hours.
During the first quarter of fiscal 2012, Cisco repurchased 100 million shares of common stock under the stock repurchase program at an average price of $15.37 per share for an aggregate purchase price of $1.5 billion
John Chambers, Cisco Chairman and CEO, stated, “We’ve completed the majority of our restructuring and have organized Cisco to successfully execute against our strategy of providing intelligent networks, architectures and integrated products that solve customers’ business problems. Even in times of limited capital spending, intelligent networks are being deployed to drive new business, revenue and consumption models, enable new customer and employee experiences, and drive efficiencies. Cisco’s leadership in networking, video, collaboration and cloud, offered together in an integrated architectural approach, uniquely positions Cisco as a strategic business partner.”