Cisco Systems (CSCO) has reported 7.07 percent rise in profit for the quarter ended Apr. 29, 2017. The company has earned $2,515 million, or $0.50 a share in the quarter, compared with $2,349 million, or $0.46 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $3,026 million, or $0.60 a share compared with $2,880 million or $0.57 a share, a year ago. 

Revenue during the quarter went down marginally by 0.50 percent to $11,940 million from $12,000 million in the previous year period. Gross margin for the quarter contracted 138 basis points over the previous year period to 62.96 percent. Total expenses were 73.46 percent of quarterly revenues, down from 75.13 percent for the same period last year. This has led to an improvement of 167 basis points in operating margin to 26.54 percent.

Operating income for the quarter was $3,169 million, compared with $2,984 million in the previous year period.

However, the adjusted operating profit for the quarter stood at $3,900 million.

"I am pleased with the progress we are making on the multi-year transformation of our business," said Chuck Robbins, chief executive officer, Cisco. "The Network is becoming even more critical to business success as our customers add billions of new connections to their enterprises. We are laser focused on delivering unparalleled value through highly secure, software-defined, automated and intelligent infrastructure."

For the fourth-quarter, Cisco Systems projects revenue to decline in the range of 6 percent to 4 percent. The company projects operating income to grow in the range of 22.50 percent to 23.50 percent. The company projects adjusted operating income to grow in the range of 29.50 percent to 30.50 percent. The company forecasts diluted earnings per share to be in the range of $0.46 to $0.51. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.60 to $0.62.

The company has spent $6,688 million cash to meet investing activities during the nine month period as against cash outgo of $4,751 million in the last year period. It has incurred net capital expenditure of $750 million on net basis during the nine month period, down 13.69 percent or $119 million from year ago period.

The company has spent $2,702 million cash to carry out financing activities during the nine month period as against cash outgo of $2,983 million in the last year period.

Cash and cash equivalents stood at $8,116 million as on Apr. 29, 2017, down 8.76 percent or $779 million from $8,895 million on Apr. 30, 2016.

Working capital increases marginally
Cisco Systems has recorded an increase in the working capital over the last year. It stood at $57,244 million as at Apr. 29, 2017, up 4.90 percent or $2,676 million from $54,568 million on Apr. 30, 2016. Current ratio was at 3.52 as on Apr. 29, 2017, up from 3.27 on Apr. 30, 2016.

Cash conversion cycle (CCC) has decreased to 61 days for the quarter from 80 days for the last year period. Days sales outstanding went down to 69 days for the quarter compared with 72 days for the same period last year.

Days inventory outstanding has decreased to 14 days for the quarter compared with 31 days for the previous year period. At the same time, days payable outstanding was almost stable at 22 days for the quarter, when compared with the previous year period.