Cisco reported third-quarter revenue of $13.0 billion, up 6% year over year. Net income (GAAP) was $3.0 billion or $0.69 per share, and non-GAAP net income of $3.5 billion or $0.78 per share. The result reflect the divestiture of Service Provider Video Software Solutions (SPVSS) business in October.
“Our strong performance in the quarter was across the business, reflecting our customers’ confidence in our strategy, business model and market-leading portfolio,” said Chuck Robbins, chairman and CEO of Cisco. “Technology is at the heart of our customers’ strategies and we are building the technology to help them achieve their business objectives.”
Q3 FY 2019 Highlights
- Revenue — Total revenue was $13.0 billion, up 6%, with product revenue up 7% and service revenue up 3%.
- Revenue by geographic segment was: Americas up 9%, EMEA up 5%, and APJC down 4%.
- Product revenue performance was broad based with growth in Security, up 21%, Applications, up 9%, and Infrastructure Platforms, up 5%.
- Gross Margin — On a GAAP basis, total gross margin, product gross margin, and service gross margin were 63.1%, 62.0%, and 66.3%, respectively, as compared with 62.3%, 61.0%, and 65.8%, respectively, in the third quarter of fiscal 2018.
- Software subscriptions were 65% of total software revenue, up 9 points year-over-year.