Networking-giant Cisco (CSCO) reported decent fiscal second-quarter earnings Wednesday that showed its turnaround efforts are bearing fruit. Though we will be revisiting our valuation on the company, we don’t expect to make a material change to our fair value estimate. Fourth-quarter net sales advanced 11% from the same period a year ago, while earnings per share came in at $0.47 on a non-GAAP basis, ahead of expectations. The company’s widely-watched adjusted gross margin expanded modestly to 62.4% during the quarter from 62.35% in the same period a year-ago. Non-GAAP net income advanced by over 23% from last year’s quarter, while cash from operations was $3.1 billion—better than levels achieved on both a sequential and year-over-year quarterly basis. The company continues to hold an astounding $46.7 billion in cash and cash equivalents (or nearly $9 per share on a gross basis and roughly $5.50 on a net basis). Though this is sizable by any measure, we have appropriately captured such a large cash position in our valuation process. For its fiscal third quarter, Cisco expects revenue to expand between 5% to 7%, adjusted gross margins to be in the range of 61.5% to 62%, and non-GAAP earnings per share to come in between $0.45 to $0.47, all mostly in line with our expectations. Cisco upped its annual dividend to $0.32 per share ($0.08 quarterly, was $0.06), which translates to a modest annual dividend yield of 1.56% at current prices, below the yields of other tech giants like Microsoft (MSFT) and Intel (INTC)—the latter two we like better. All things considered, we think Cisco’s shares are fairly-valued based on our discounted cash-flow process, and we’re in no hurry to own the stock.