Cisco reported revenue of $12.8 billion for its fourth quarter of FY 18, up 6% year-over-year — its strongest sales growth in a while. Revenue growth in the 5% to 7% range is also forecast for this quarter (1Q FY 19)
GAAP net income was $3.8 billion or $0.81 per share, and non-GAAP net income was $3.3 billion or $0.70 per share.
“We had a very strong finish to a great year and generated our highest quarterly revenue of $12.8 billion,” said Chuck Robbins, Chairman and CEO of Cisco. “Our results demonstrate a combination of strong customer adoption of our latest innovations, the ongoing value customers see in our software and subscription offerings, and excellent execution across our customer segments and geographies. Our strategy is working and we believe that are well-positioned to capture growth across our portfolio with our pipeline of innovation.”
Some highlights
- Product revenue was up 7%
- Service revenue was up 3%.
- Recurring revenue as a percentage of total revenue was 32%, up 1 point year over year.
- Revenue by geographic segment was: Americas up 5%, EMEA up 8%, and APJC up 6%.
- Product revenue performance was generally broad based with growth in Security, up 12%, Applications, up 10%, and Infrastructure Platforms, up 7%.
- By customer segment, enterprise was up 11%, commercial was up 9%, public sector was up 1% and service provider return to grow, up 6%.
- On a GAAP basis, total gross margin, product gross margin, and service gross margin were 61.7%, 60.2%, and 66.0%, respectively, as compared with 62.2%, 60.3%, and 67.8%, respectively, in the fourth quarter of 2017.
- Deferred revenue amounted to $19.7 billion, up 6% in total, with deferred product revenue up 15%, driven largely by subscription-based and software offers, and deferred service revenue was up 1%. The portion of deferred product revenue related to recurring software and subscription offers increased 23%.
- Ended Q4 with $46.5 billion in cash and cash equivalents
- For the full FY18, revenue amounted to $49.3 billion, up 3%. Operating cash flow was $13.7 billion.
- The Catalyst 9000 remains the fastest ramping product in company history. At the end of the quarter, there were over 9,650 customers
