Cisco reported fourth quarter net sales of $8.5 billion, net income on a generally accepted accounting principles (GAAP) basis of $1.1 billion or $0.19 per share, and non-GAAP net income of $1.8 billion or $0.31 per share. Revenue was down 18% compared to the same quarter a year earlier.
“Cisco delivered very solid quarterly and annual results in a challenging economic environment, as we continued our focus on disciplined execution and our customers’ success,” said John Chambers, chairman and chief executive officer, Cisco. “We are confident in our strategic position in both existing and thirty adjacent markets. We saw a number of positive signs this quarter in the economy and in our business, especially comparing our sequential quarter-over-quarter order trends. If we continue to see these positive order trends for the next one to two quarters, we believe there is a good chance we will look back and see that the tipping point occurred in our business in Q4.”
Some highlights for the quarter:
- Exceeding goal of reducing annual expenses by $1.5 billion
- Cisco saw a return to “normal order patterns” compared to the previous two quarters. The company said it was seeing positive trends in Asia Pacific, U.S., emerging markets and Japan.
- Major job cuts and realignments are now complete
- Revenue guidance for Q1 FY 2010 is for a decline of 15-17% YoY
- Gross margin (non-GAAP) was 65.3%, compared to 65.1% in the preceding quarter.
- Among Cisco’s Advanced Technologies, TelePresence grew 97% YoY and grew 14% YoY. Meanwhile, video was down 30%, unified communications was down 5%, wireless was down 19%, security was down 19%, networked home was down 26%, ANS was down 27% and storage was down 8%.
- Cash flows from operations were $2.0 billion for the fourth quarter of fiscal 2009, compared with $3.5 billion for the fourth quarter of fiscal 2008, and compared with $2.0 billion for the third quarter of fiscal 2009. Cash flows from operations were $9.9 billion for fiscal 2009, compared with $12.1 billion for fiscal 2008.
- Cash and cash equivalents and investments were $35.0 billion at the end of fiscal 2009, compared with $26.2 billion at the end of fiscal 2008, and compared with $33.6 billion at the end of the third quarter of fiscal 2009.
- Deferred revenue was $9.4 billion at the end of fiscal 2009, compared with $8.9 billion at the end of fiscal 2008, and compared with $8.8 billion at the end of the third quarter of fiscal 2009.
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