Cisco Systems posted quarterly sales of $6.6 billion, an 11.1% increase year over year and up 6.4% over the preceding quarter. Net income for the quarter was $1.5 billion (GAAP) and EPS was $0.24.
Net sales for fiscal 2005, which ended 30-July-2005, were $24.8 billion, compared with $22.0 billion for fiscal 2004, an increase of 12.5%.
“The close of Cisco’s fourth quarter and 2005 fiscal year marks not only a period of strong operating performance for the company, including record net income and earnings per share, but also further demonstrates that our architectural strategy is working,” said John Chambers, Cisco’s president and CEO.
Some highlights:
- Product gross margins were 67.6%
- Product sales for the quarter were: routers, $1.48 billion, up 3% YoY; switches, $2.66 billion, up 8%; advanced technologies, $1.16 billion, up 27%; services, $1.06 billion, up 15%; and other, $229 million, up 11%.
- Cash flows from operations were $2.4 billion, compared with $1.9 billion for the preceding quarter. Cash and cash equivalents and total investments were $16.1 billion at the end of fiscal 2005, compared with $19.3 billion at the end of fiscal 2004.
- During the fourth quarter of fiscal 2005, Cisco repurchased 130 million shares of common stock at an average price of $19.14 per share for an aggregate purchase price of $2.5 billion.
- Regarding guidance for FY 2006 and Q1 FY 2006, Cisco urged analysts not to let expectations get ahead of its ability to deliver results. Cisco expects long-term growth over the next few years to be 10-15% annually, with total gross margins remaining at 66-67%.
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