=Cisco Systems (CSCO) reported earnings on Wed 16 Aug 17 (a/h)

Cisco Systems reports EPS in-line, revs in-line; guides Q1 in-line

• Reports Q4 (Jul) earnings of $0.61 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.61; revenues fell 4.0% year/year to $12.13 bln vs the $12.07 bln Capital IQ Consensus. with product revenue down 5% and service revenue up 1%.
  • 31% of total revenue was from recurring offers, up 4 percentage points from the fourth quarter of fiscal 2016.
  • Revenue by geographic segment was: Americas down 6%, EMEA down 6%, and APJC up 6%.
  • Product revenue performance was led by Wireless and Security which increased 5% and 3%, respectively.
  • NGN Routing and Switching revenue each decreased 9%.
  • Service Provider Video, Data Center, and Collaboration revenue decreased 10%, 4%, and 3%, respectively.
  • Non-GAAP total gross margin and product gross margin were 63.7% and 61.9%, respectively. The decrease in non-GAAP product gross margin compared with 63.9% in the fourth quarter of fiscal 2016 was also primarily due to pricing, partially offset by continued productivity improvements and to a lesser extent product mix.
• Co issues in-line guidance for Q1, sees EPS of $0.59-0.61, excluding non-recurring items, vs. $0.60 Capital IQ Consensus Estimate; sees Q1 revs down 1-3% to ~$11.98-12.23 bln vs. $12.08 bln Capital IQ Consensus; adj. GM 63-64%
• Product Backlog -- was ~$4.8 billion at the end of fiscal 2017, an increase of 3% Y/Y.