Tuesday, 27 June 2017

Cisco demonstrates solid execution in Q3

Cisco
Thursday 15 May 14

Cisco, the worldwide leader in networking that transforms how people connect, communicate and collaborate, today reported its third quarter results for the period ended April 26, 2014. Cisco reported third quarter revenue of $11.5 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.2 billion or $0.42 per share, and non-GAAP net income of $2.6 billion or $0.51 per share. "I'm pleased with our performance in Q3. Our financial results exceeded the guidance we provided last quarter as we demonstrated clear progress on returning to growth. The entire team is focused on moving Cisco forward aggressively and we remain confident in our long-term goal to be the #1 IT company," stated John Chambers, Cisco chairman and chief executive officer. Revenue for the first nine months of fiscal 2014 was $34.8 billion, compared with $36.2 billion for the first nine months of fiscal 2013…

Cisco, the worldwide leader in networking that transforms how people connect, communicate and collaborate, today reported its third quarter results for the period ended April 26, 2014. Cisco reported third quarter revenue of $11.5 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.2 billion or $0.42 per share, and non-GAAP net income of $2.6 billion or $0.51 per share.

"I'm pleased with our performance in Q3. Our financial results exceeded the guidance we provided last quarter as we demonstrated clear progress on returning to growth. The entire team is focused on moving Cisco forward aggressively and we remain confident in our long-term goal to be the #1 IT company," stated John Chambers, Cisco chairman and chief executive officer.

Revenue for the first nine months of fiscal 2014 was $34.8 billion, compared with $36.2 billion for the first nine months of fiscal 2013. Net income for the first nine months of fiscal 2014, on a GAAP basis, was $5.6 billion or $1.06 per share, compared with $7.7 billion or $1.44 per share for the first nine months of fiscal 2013. Non-GAAP net income for the first nine months of fiscal 2014 was $8.0 billion or $1.51 per share, compared with $8.0 billion or $1.50 per share for the first nine months of fiscal 2013.

A reconciliation between net income on a GAAP basis and non-GAAP net income is provided in the table following the Consolidated Statements of Operations.

Cisco will discuss third quarter results and business outlook on a conference call and webcast at 1:30 p.m. Pacific Time today. Call information and related charts are available at http://investor.cisco.com.

Cash and Cash Equivalents and Investments

Cash flows from operations were $3.2 billion for the third quarter of fiscal 2014, compared with $2.9 billion for the second quarter of fiscal 2014, and compared with $3.1 billion for the third quarter of fiscal 2013.

Cash and cash equivalents and investments were $50.5 billion at the end of the third quarter of fiscal 2014, compared with $47.1 billion at the end of the second quarter of fiscal 2014, and compared with $50.6 billion at the end of the fourth quarter of fiscal 2013.

Dividends and Stock Repurchase Program

Cisco repurchased approximately 90 million shares of common stock under the stock repurchase program at an average price of $22.24 per share for an aggregate purchase price of $2.0 billion during the third quarter of fiscal 2014. As of April 26, 2014, Cisco had repurchased and retired 4.2 billion shares of Cisco common stock at an average price of $20.56 per share for an aggregate purchase price of approximately $86.9 billion since the inception of the stock repurchase program. The remaining authorized amount for stock repurchases under this program as of April 26, 2014 was approximately $10.1 billion with no termination date.

During the third quarter of fiscal 2014, Cisco paid a cash dividend of $0.19 per common share, or $974 million.

"We executed well this quarter with a focus on operational excellence," stated Frank Calderoni, Cisco executive vice president and chief financial officer. "Our strong and consistent cash generation demonstrates the value of our business model."

Internet of Everything

Cisco announced plans to build the world's largest global Intercloud for the Internet of Everything (IoE) together with a set of partners, a distributed network and security architecture designed for high-value application workloads, real-time analytics, "near infinite" scalability and full compliance with local data sovereignty laws.
Cisco and AGT International announced a Smart City Global Strategic Alliance that plans to deliver the promise of the IoE through edge analytics and cloud technologies that dramatically change the way cities are managed and safeguarded.
Cisco selected Toronto as the location for one of four global Cisco® Internet of Everything Innovation Centers, representing a planned investment of up to $100 million over 10 years.

Next Generation of IT

Cisco's Visual Networking Index™ Global Mobile Data Traffic Forecast Update for 2013 to 2018 projects that worldwide mobile data traffic is expected to increase nearly 11-fold over the next four years and reach an annual run rate of 190 exabytes by 2018.
Cisco announced it worked with Fira de Barcelona and the GSMA to successfully provide one of the world's largest carrier-grade Wi-Fi networks at the GSMA's Mobile World Congress 2014 at Fira Gran Via in Barcelona, underscoring the growing importance of Wi-Fi to cellular.
Cisco, AT&T, GE, IBM and Intel announced the formation of the Industrial Internet Consortium™, an open membership group focused on breaking down the barriers of technology silos to support better access to big data with improved integration of the physical and digital worlds.
Cisco announced Managed Threat Defense, a managed security solution that applies real-time, predictive analytics designed to detect attacks and protect against advanced malware across customers' extended networks.

Innovation

Cisco extended Application Centric Infrastructure (ACI) by introducing the Cisco Application Policy Infrastructure Controller (APIC) Enterprise Module, which extends to the WAN and access networks.
Cisco continued delivering on its vision for fog computing with the announcement of Cisco IOx, transforming the network edge into a distributed computing infrastructure for applications that take advantage of the billions of devices already connected in the Internet of Things (IoT).
Cisco announced OpenAppID, allowing for the ability to create and integrate new open source application identification capabilities into its Snort engine.
Cisco announced an agreement with CableLabs to provide them with core infrastructure and Videoscape components for a new IPTV Innovations Lab in Louisville, Colorado designed to provide cable system operator members with a state-of-the-art location for Internet Protocol (IP) video testing.
Cisco and Sony became the first companies to publicly demonstrate the live delivery of full-frame rate 4K 60P content at NAB 2014.

Editor's Notes:

Q3 fiscal year 2014 conference call to discuss Cisco's results along with its business outlook will be held on Wednesday, May 14, 2014 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international).
Conference call replay will be available from 4:00 p.m. Pacific Time on May 14, 2014 to 11:59 p.m. Pacific Time on June 1, 2014 at 1-800-945-7422 (United States) or 1-203-369-3952 (international). The replay will also be available via webcast from May 14, 2014 through July 19, 2014 on the Cisco Investor Relations website at http://investor.cisco.com.
Additional information regarding Cisco's financials as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, May 14, 2014. Text of the conference call's prepared remarks will be available within 24 hours of completion of the call. The webcast will include both the prepared remarks and the question-and-answer session. This information, along with GAAP reconciliation information, will be available on the Cisco Investor Relations website at http://investor.cisco.com.


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