Cisco Systems (CSCO) posted a 55% tumble in fiscal second-quarter profits on Wednesday due to one-time items, but the tech giant’s adjusted earnings and revenue narrowly topped forecasts.
Shares of the networking equipment maker ticked slightly lower despite the earnings beat as well as a dividend hike.
Cisco said it earned $1.4 billion, or 27 cents a share, last quarter, compared with a profit of $3.1 billion, or 59 cents a share, a year earlier.
The most recent quarter included a pre-tax charge of $655 million tied to the expected cost of remediation issues with memory components. The year-earlier period was boosted by tax benefits of $926 million.
Excluding one-time items, it earned 47 cents a share, down from 51 cents the year before but still a penny better than the Street had been banking on.
Revenue dropped 8% to $11.16 billion, topping consensus calls from analysts for $11.03 billion.
“I'm pleased with the progress we've made managing through the technology transitions of cloud, mobile, security and video," CEO John Chambers said in a statement. "Our financials are strong and our strategy is solid.”
Cisco said its board of directors signed off on a new dividend of 19 cents per share, compared with 17 cents previously.
Shares of San Jose-based Cisco dipped 0.26% to $22.79 in after-hours action on Wednesday. Cisco shares have gained just 8% over the past year, underperforming the broader markets.