=Cisco Systems (CSCO) reported earnings on Wed 17 March 17 (a/h)

Cisco Systems beats by $0.02, reports revs in-line; guides Q4 EPS in-line, revs below consensus :

• Reports Q3 (Apr) earnings of $0.60 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.58; revenues fell 0.5% year/year to $11.94 bln vs the $11.9 bln Capital IQ Consensus, with product revenue flat and service revenue down 2%. 31% of total revenue was from recurring offers, up from 29% for the third quarter of fiscal 2016.
• Revenue by geographic segment was: Americas flat, EMEA flat, and APJC down 2%.
• Product revenue performance was led by Wireless and Security, which increased by 13% and 9%, respectively. Switching revenue increased by 2%. NGN Routing, Collaboration, Data Center, and Service Provider Video revenue decreased by 2%, 4%, 5%, and 30%, respectively.
• Non-GAAP total gross margin and product gross margin were 64.4% (guidance 63-64%) and 63.2%, respectively. The decrease in non-GAAP product gross margin compared with 64.5% in the third quarter of fiscal 2016 was primarily due to pricing and product mix, partially offset by continued productivity improvements.
• Co issues guidance for Q4, sees EPS of $0.60-0.62, excluding non-recurring items, vs. $0.62 Capital IQ Consensus Estimate; sees Q4 revs down 4-6% to $11.88-12.13 bln vs. $12.53 bln Capital IQ Consensus Estimate.