Revenue during the quarter went down marginally by 2.91 percent to $11,580 million from $11,927 million in the previous year period. Gross margin for the quarter expanded 52 basis points over the previous year period to 62.83 percent. Total expenses were 75.02 percent of quarterly revenues, up from 72.38 percent for the same period last year. That has resulted in a contraction of 264 basis points in operating margin to 24.98 percent.

Operating income for the quarter was $2,893 million, compared with $3,294 million in the previous year period.

However, the adjusted operating income for the quarter stood at $3,595 million compared to $3,693 million in the prior year period. At the same time, adjusted operating margin improved 8 basis points in the quarter to 31.04 percent from 30.96 percent in the last year period.

"We are pleased with the quarter and the continued customer momentum as we help them drive security, automation and intelligence across the network and into the cloud," said Chuck Robbins, Cisco chief executive officer. "This quarter we announced our intent to acquire AppDynamics which, combined with Ciscos networking analytics, will provide customers with unprecedented insights into business performance. We will remain focused on accelerating innovation across our portfolio as we continue to deliver value to customers and shareholders."

The company expects adjusted operating income to grow in the range of 29 percent to 30 percent for the third-quarter. The company projects diluted earnings per share to be in the range of $0.44 to $0.49 for the third-quarter. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.57 to $0.59 for the third-quarter.

The company has spent $4,978 million cash to meet investing activities during the first six months as against cash outgo of $2,387 million in the last year period. It has incurred net capital expenditure of $521 million on net basis during the first six months, down 7.79 percent or $44 million from year ago period.

Cash flow from financing activities was $1,743 million for the first six months as against cash outgo of $4,864 million in the last year period.

Cash and cash equivalents stood at $10,898 million as on Jan. 28, 2017, up 72.60 percent or $4,584 million from $6,314 million on Jan. 23, 2016.

Working capital increases
Cisco Systems has recorded an increase in the working capital over the last year. It stood at $60,684 million as at Jan. 28, 2017, up 16.24 percent or $8,478 million from $52,206 million on Jan. 23, 2016. Current ratio was at 3.67 as on Jan. 28, 2017, up from 3.29 on Jan. 23, 2016.

Cash conversion cycle (CCC) has decreased to 63 days for the quarter from 77 days for the last year period. Days sales outstanding went up to 71 days for the quarter compared with 69 days for the same period last year.

Days inventory outstanding has decreased to 13 days for the quarter compared with 29 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.