Cisco posts revenue of $12.0 billion, down 8% YoY

Cisco reported revenue of $12.0 billion for its third fiscal quarter ended April 25, 2020, down 8% compared to a year earlier.  Net income (GAAP) was $2.8 billion or $0.65 per share, down 9% compared to a year earlier, and non-GAAP net income was $3.4 billion or $0.79 per share.

“During this extraordinary time, our priority has been supporting our employees, customers, partners and communities, while positioning Cisco for the future,” said Chuck Robbins, chairman and CEO of Cisco.  “The pandemic has driven organizations across the globe to digitize their operations and support remote workforces at a faster speed and greater scale than ever before.  We remain focused on providing the technology and solutions our customers need to accelerate their digital organizations.”

“We executed well in Q3 in a very challenging environment, delivering strong margins and non-GAAP EPS growth,” said Kelly Kramer, CFO of Cisco.  “The resiliency that we have been building into our business model is paying off, with software subscriptions now at 74% of our software revenue, up 9 points year over year.  We are focused on driving long-term profitable growth while delivering shareholder value.”

Highlights:

• Product revenue down 12% and service revenue up 5%, compared to a year earlier.
• Revenue by geographic segment was: Americas down 8%, EMEA down 7%, and APJC down 9%. 
• Product revenue was led by growth in Security, up 6%.  Infrastructure Platforms was down 15% and Applications was down 5%.
• On a GAAP basis, total gross margin, product gross margin, and service gross margin were 64.9%, 63.7%, and 67.7%, respectively, as compared with 63.1%, 62.0%, and 66.3%, respectively, in the third quarter of fiscal 2019.