- Cisco Systems (NASDAQ:CSCO) is 5% lower after it topped expectations with its fiscal Q4 earnings but issued downbeat guidance for the current quarter, the start of its new fiscal year.
- Revenues fell 9% to $12.2B, with declines across all regions, and non-GAAP EPS fell 4% to $0.80.
- Security was again a bright spot for revenues (with a 10% gain) but its core infrastructure platforms business dipped by double digits.
- The company's achieved its goal of drawing more than half its revenue from software and services, it says.
- "We executed well in Q4, delivering strong margins despite the very challenging environment," says CFO Kelly Kramer. "Software subscriptions now make up 78% of our software revenue and remaining performance obligations continued to grow strongly in the quarter, reflecting the strength of our portfolio of software and services."
- Revenue by geo: Americas, $7.19B (down 12%); EMEA, $3.11B (down 6%); APJC, $1.86B (down 7%).
- Revenue by type: Infrastructure Platforms, $6.63B (down 16%); Applications, $1.36B (down 9%); Security, $814M (up 10%); Other products, $35M (down 17%); Services, $3.32B.
- For fiscal Q1 2021, it's guiding to a revenue decline of 9-11% year-over-year, with gross margin of 64-65%, operating margin of 30-31%, and EPS of $0.69-$0.71 (below consensus for $0.76).
- That revenue guidance points to $11.71B-$11.98B, below consensus for $12.29B.
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Conference call to come at 4:30 p.m. ET.
- Press release