Cisco 2012 Annual Report Download - page 6

4 Cisco Systems, Inc.
Annual Report 2012
Letter to Shareholders
perspective, we completed seven
acquisitions in fiscal 2012, and we believe
each acquisition ties directly into Cisco’s
foundational priorities. From a partner
standpoint, we remained focused on
listening to our customers, who rely on
us to deliver world-class solutions, often
together with strategic partners. These
partnerships can be complex, and it is
possible that we will find ourselves in
markets where we compete as well as
partner. Where there is the opportunity to
partner, we intend to partner effectively.
Where there is overlap, we plan to
compete with intensity.
MAXIMIZING SHAREHOLDER VALUE
We are listening to you, our shareholders,
as we look to increase shareholdervalue.
In fiscal 2012, Cisco paid cash dividends
of $0.28 per common share, or $1.5
billion. During our fourth quarter and
fiscal 2012 earnings call in August, we
announced that we would increase our
dividend for the first quarter of fiscal
2013 by 75%, to $0.14 per share, which
based on our share price at the date of
this letter would represent an approximate
3% yield and place ours among the
highest dividend yields of large cap
technology companies. In fiscal 2012,
Cisco also repurchased 262 million shares
of common stock at an average price
of $16.64 per share for an aggregate
purchase price of $4.4 billion. In addition
to announcing the dividend increase
for the first quarter of fiscal 2013, we
announced our intent to return a minimum
of 50% of our free cash flow annually to
shareholders through dividends and share
repurchases.
CAPTURING THE FUTURE
OPPORTUNITY
With the new fiscal year upon us, we
remain highly focused in a complex
macroeconomic environment, and we
believe we are well-positioned to deliver
on our fiscal 2013 priorities. We continue
to realign resources to ensure that we
are innovating and making investments
that are in the best interests of our
shareholders, customers, and partners.
We are focused on the goal of gaining
market share across all of our key product
categories, including those in which we
already lead. We continue to strive to
deliver profitable growth and generate
long-term shareholder value. We also
plan to continue taking advantage of the
opportunities in front of us, executing on
our vision and strategy and winning in our
customer and geographic segments.
Cisco is a great company with an
exceptional track record, a strong culture
of innovation, a passion for customer
success, and the talent to deliver results.
We believe our ability to anticipate
and respond to both challenges and
opportunities is a fundamental part of our
DNA, and we plan to continue to double
down, adjust, and reinvent as necessary
to ensure our success going forward. We
value your partnership as we position the
company to lead into the future. I strongly
believe it will be an exciting journey for
us all, and I want to thank you for your
on-going commitment, support, and trust.
John T. Chambers
Chairman & CEO, Cisco
September 12, 2012