16.02.2022 22:05:00

Cisco Reports Second Quarter Earnings

SAN JOSE, Calif., Feb. 16, 2022 /PRNewswire/ --

Cisco Logo (PRNewsfoto/Cisco)

News Summary:

  • Strong business momentum drove $12.7 billion in revenue, up 6% year over year; GAAP EPS $0.71, up 18% year over year, and Non-GAAP EPS $0.84, up 6% year over year
  • Continued robust demand across the business with third consecutive quarter of more than 30% total product order growth
  • Solid progress on business model transformation with total Annualized Recurring Revenue (ARR) at $21.9 billion in the second quarter of fiscal 2022, up 11% year over year
  • Dividend increased 3% and additional $15 billion authorized for stock repurchase
  • Q2 Results:
    • Revenue:$12.7 billion
      • Increase of 6% year over year
    • Earnings per Share: GAAP: $0.71; Non-GAAP: $0.84
      • GAAP EPS increased 18% year over year
      • Non-GAAP EPS increased 6% year over year
  • Q3 Guidance:   
    • Revenue: 3% to 5% growth year over year
    • Earnings per Share: GAAP: $0.70 to $0.74; Non-GAAP: $0.85 to $0.87
  • FY 2022 Guidance:
    • Revenue: 5.5% to 6.5% growth year over year
    • Earnings per Share: GAAP: $2.83 to $2.92; Non-GAAP: $3.41 to $3.46

Cisco today reported second quarter results for the period ended January 29, 2022. Cisco reported second quarter revenue of $12.7 billion, net income on a generally accepted accounting principles (GAAP) basis of $3.0 billion or $0.71 per share, and non-GAAP net income of $3.5 billion or $0.84 per share.

"We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Cisco's innovation," said Chuck Robbins, chair and CEO of Cisco. "Our robust order strength, record backlog and double-digit growth in annual recurring revenue position us well to deliver growth."

GAAP Results




Q2 FY 2022


Q2 FY 2021


Vs. Q2 FY 2021

Revenue


$

12.7

billion


$

12.0

billion


6%

Net Income


$

3.0

billion


$

2.5

billion


17%

Diluted Earnings per Share (EPS)


$

0.71



$

0.60



18%

 

Non-GAAP Results




Q2 FY 2022


Q2 FY 2021


Vs. Q2 FY 2021

Net Income


$

3.5

billion


$

3.4

billion


6%

EPS


$

0.84



$

0.79



6%

Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP basis are provided in the tables located in the section entitled "Reconciliations of GAAP to non-GAAP Measures."

Cisco Increases Quarterly Cash Dividend; Stock Repurchase Program Authorization Increased

Cisco has declared a quarterly dividend of $0.38 per common share, a 1-cent increase or up 3% over the previous quarter's dividend, to be paid on April 27, 2022 to all stockholders of record as of the close of business on April 6, 2022. Future dividends will be subject to Board approval.

Cisco's board of directors has also approved a $15 billion increase to the authorization of the stock repurchase program. There is no fixed termination date for the repurchase program. The remaining authorized amount for stock repurchases including the additional authorization is approximately $18 billion.

"Our business performed well with revenue and non-GAAP EPS growing 6% year over year despite the supply-constrained environment," said Scott Herren, CFO of Cisco. "We delivered healthy margins while continuing to make good progress in our business model shift, with software product revenue growing 9% year over year and the product portions of ARR and RPO growing in double digits. The combination of our dividend increase and additional share repurchase authorization demonstrates our commitment to returning excess capital to our shareholders and confidence in our ongoing cash flows."

Financial Summary

All comparative percentages are on a year-over-year basis unless otherwise noted.

Q2 FY 2022 Highlights

Revenue -- Total revenue was up 6% at $12.7 billion, with product revenue up 9% and service revenue down 1%. Revenue by geographic segment was: Americas up 3%, EMEA up 11%, and APJC up 13%. Product revenue performance was led by growth in Secure, Agile Networks up 7%, Internet for the Future up 42%, End-to-End Security up 7%, and Optimized Application Experiences up 12%. Hybrid Work was down 9%.

Gross Margin -- On a GAAP basis, total gross margin, product gross margin, and service gross margin were 63.3%, 61.8%, and 67.3%, respectively, as compared with 65.1%, 64.5%, and 66.6%, respectively, in the second quarter of fiscal 2021.

On a non-GAAP basis, total gross margin, product gross margin, and service gross margin were 65.5%, 64.3%, and 68.8%, respectively, as compared with 66.9%, 66.6%, and 67.9%, respectively, in the second quarter of fiscal 2021.

Total gross margins by geographic segment were: 64.5% for the Americas, 66.8% for EMEA and 66.5% for APJC.

Operating Expenses -- On a GAAP basis, operating expenses were flat at $4.6 billion, and were 35.9% of revenue. Non-GAAP operating expenses were $4.0 billion, up 2%, and were 31.2% of revenue.

Operating Income -- GAAP operating income was $3.5 billion, up 8%, with GAAP operating margin of 27.4%. Non-GAAP operating income was $4.4 billion, up 6%, with non-GAAP operating margin at 34.3%.

Provision for Income Taxes -- The GAAP tax provision rate was 17.5%. The non-GAAP tax provision rate was 19.0%.

Net Income and EPS -- On a GAAP basis, net income was $3.0 billion, an increase of 17%, and EPS was $0.71, an increase of 18%. On a non-GAAP basis, net income was $3.5 billion, an increase of 6%, and EPS was $0.84, an increase of 6%.

Cash Flow from Operating Activities --$2.5 billion for the second quarter of fiscal 2022, a decrease of 17% compared with $3.0 billion for the second quarter of fiscal 2021.

Balance Sheet and Other Financial Highlights

Cash and Cash Equivalents and Investments -- $21.1 billion at the end of the second quarter of fiscal 2022, compared with $24.5 billion at the end of fiscal 2021.

Remaining Performance Obligations (RPO)--$30.5 billion, up 8% in total, with 53% of this amount to be recognized as revenue over the next 12 months. Product RPO were up 16% and service RPO were up 3%.

Deferred Revenue -- $22.3 billion, up 7% in total, with deferred product revenue up 17%. Deferred service revenue was flat.

Capital Allocation -- In the second quarter of fiscal 2022, we returned $6.4 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.37 per common share, or $1.5 billion, and repurchased approximately 82 million shares of common stock under our stock repurchase program at an average price of $58.36 per share for an aggregate purchase price of $4.8 billion.

Acquisitions

In the second quarter of fiscal 2022, we closed the acquisition of replex GmbH, a privately held enterprise software company based in Germany. In addition, we announced our intent to acquire Opsani, a privately held enterprise software company.

Guidance

Cisco expects to achieve the following results for the third quarter of fiscal 2022:

Q3 FY 2022



Revenue


3% - 5% growth Y/Y

Non-GAAP gross margin rate


63.5% - 64.5%

Non-GAAP operating margin rate


32.5% - 33.5%

Non-GAAP EPS


$0.85 - $0.87

The third quarter of fiscal 2021 included an extra week.

Cisco estimates that GAAP EPS will be $0.70 to $0.74 for the third quarter of fiscal 2022.

Cisco expects to achieve the following results for fiscal 2022:

FY 2022



Revenue


5.5% - 6.5% growth Y/Y

Non-GAAP EPS


$3.41 - $3.46

Cisco estimates that GAAP EPS will be $2.83 to $2.92 for fiscal 2022.

Our Q3 FY 2022 and FY 2022 guidance assumes an effective tax provision rate of 18% for GAAP and 19% for non-GAAP results.

A reconciliation between the Guidance on a GAAP and non-GAAP basis is provided in the tables entitled "GAAP to non-GAAP Guidance" located in the section entitled "Reconciliations of GAAP to non-GAAP Measures."

Editor's Notes:

  • Q2 fiscal year 2022 conference call to discuss Cisco's results along with its guidance will be held on Wednesday, February 16, 2022 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international).
  • Conference call replay will be available from 4:00 p.m. Pacific Time, February 16, 2022 to 4:00 p.m. Pacific Time, February 23, 2022 at 1-888-568-0332 (United States) or 1-203-369-3905 (international). The replay will also be available via webcast on the Cisco Investor Relations website at https://investor.cisco.com.
  • Additional information regarding Cisco's financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, February 16, 2022. Text of the conference call's prepared remarks will be available within 24 hours of completion of the call. The webcast will include both the prepared remarks and the question-and-answer session. This information, along with the GAAP to non-GAAP reconciliation information, will be available on the Cisco Investor Relations website at https://investor.cisco.com.

CISCO SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per-share amounts)

(Unaudited) 



Three Months Ended


Six Months Ended


January 29,
2022


January 23,
2021


January 29,
2022


January 23,
2021

REVENUE:








Product

$

9,353



$

8,572



$

18,882



$

17,159


Service

3,367



3,388



6,738



6,730


Total revenue

12,720



11,960



25,620



23,889


COST OF SALES:








Product

3,569



3,044



7,242



6,250


Service

1,102



1,132



2,276



2,274


Total cost of sales

4,671



4,176



9,518



8,524


GROSS MARGIN

8,049



7,784



16,102



15,365


OPERATING EXPENSES:








Research and development

1,670



1,527



3,384



3,139


Sales and marketing

2,266



2,277



4,527



4,494


General and administrative

544



484



1,095



1,028


Amortization of purchased intangible assets

79



39



163



75


Restructuring and other charges

3



234



8



836


Total operating expenses

4,562



4,561



9,177



9,572


OPERATING INCOME

3,487



3,223



6,925



5,793


Interest income

111



161



232



335


Interest expense

(88)



(113)



(177)



(225)


Other income (loss), net

93



(16)



280



33


Interest and other income (loss), net

116



32



335



143


INCOME BEFORE PROVISION FOR INCOME TAXES

3,603



3,255



7,260



5,936


Provision for income taxes

630



710



1,307



1,217


NET INCOME

$

2,973



$

2,545



$

5,953



$

4,719










Net income per share:








Basic

$

0.71



$

0.60



$

1.42



$

1.12


Diluted

$

0.71



$

0.60



$

1.41



$

1.11


Shares used in per-share calculation:








Basic

4,183



4,223



4,201



4,227


Diluted

4,205



4,234



4,222



4,239


 

CISCO SYSTEMS, INC.

REVENUE BY SEGMENT

(In millions, except percentages)




January 29, 2022



Three Months Ended


Six Months Ended



Amount


Y/Y %


Amount


Y/Y%

Revenue:









Americas


$

7,146



3%


$

14,706



4%

EMEA


3,564



11%


6,867



11%

APJC


2,010



13%


4,046



14%

Total


$

12,720



6%


$

25,620



7%


Amounts may not sum and percentages may not recalculate due to rounding.

 

CISCO SYSTEMS, INC.

GROSS MARGIN PERCENTAGE BY SEGMENT

(In percentages)




January 29, 2022



Three Months Ended


Six Months Ended

Gross Margin Percentage:





Americas


64.5%


64.5%

EMEA


66.8%


65.7%

APJC


66.5%


65.6%

 

CISCO SYSTEMS, INC.

REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES

(In millions, except percentages)




January 29, 2022



Three Months Ended


Six Months Ended



Amount


Y/Y %


Amount


Y/Y%

Revenue:









Secure, Agile Networks


$

5,898



7%


$

11,866



9%

Hybrid Work


1,067



(9)%


2,176



(8)%

End-to-End Security


883



7%


1,778



6%

Internet for the Future


1,322



42%


2,697



44%

Optimized Application Experiences


180



12%


361



15%

Other Products


2



(28)%


5



(10)%

Total Product


9,353



9%


18,882



10%

Services


3,367



(1)%


6,738



—%

Total


$

12,720



6%


$

25,620



7%


Amounts may not sum and percentages may not recalculate due to rounding.

Effective the third quarter of fiscal 2022, Hybrid Work will change to Collaboration.

 

CISCO SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)



January 29, 2022


July 31, 2021

ASSETS




Current assets:




Cash and cash equivalents

$

6,731



$

9,175


Investments

14,382



15,343


Accounts receivable, net of allowance of $70 at January 29, 2022 and $109 at
July 31, 2021

6,003



5,766


Inventories

2,059



1,559


Financing receivables, net

3,997



4,380


Other current assets

3,627



2,889


Total current assets

36,799



39,112


Property and equipment, net

2,140



2,338


Financing receivables, net

4,024



4,884


Goodwill

38,679



38,168


Purchased intangible assets, net

3,079



3,619


Deferred tax assets

4,269



4,360


Other assets

5,272



5,016


TOTAL ASSETS

$

94,262



$

97,497


LIABILITIES AND EQUITY




Current liabilities:




Short-term debt

$

2,502



$

2,508


Accounts payable

2,101



2,362


Income taxes payable

837



801


Accrued compensation

3,364



3,818


Deferred revenue

12,268



12,148


Other current liabilities

4,843



4,620


Total current liabilities

25,915



26,257


Long-term debt

8,969



9,018


Income taxes payable

7,628



8,538


Deferred revenue

10,045



10,016


Other long-term liabilities

2,209



2,393


Total liabilities

54,766



56,222


Total equity

39,496



41,275


TOTAL LIABILITIES AND EQUITY

$

94,262



$

97,497


 

CISCO SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)



Six Months Ended


January 29,
2022


January 23,
2021

Cash flows from operating activities:




Net income

$

5,953



$

4,719


Adjustments to reconcile net income to net cash provided by operating activities:





Depreciation, amortization, and other

1,049



887


Share-based compensation expense

930



874


Provision (benefit) for receivables

8



(10)


Deferred income taxes

(138)



(91)


(Gains) losses on divestitures, investments and other, net

(323)



(86)


Change in operating assets and liabilities, net of effects of acquisitions and divestitures:




Accounts receivable

(308)



1,245


Inventories

(506)



(145)


Financing receivables

1,241



748


Other assets

(780)



(212)


Accounts payable

(250)



(358)


Income taxes, net

(876)



(836)


Accrued compensation

(437)



125


Deferred revenue

202



226


Other liabilities

123



(16)


Net cash provided by operating activities

5,888



7,070


Cash flows from investing activities:




Purchases of investments

(3,937)



(6,025)


Proceeds from sales of investments

1,402



1,374


Proceeds from maturities of investments

3,185



3,373


Acquisitions, net of cash and cash equivalents acquired and divestitures

(361)



(860)


Purchases of investments in privately held companies

(124)



(95)


Return of investments in privately held companies

104



58


Acquisition of property and equipment

(232)



(358)


Proceeds from sales of property and equipment

5



9


Other

(11)



(4)


Net cash provided by (used in) investing activities

31



(2,528)


Cash flows from financing activities:




Issuances of common stock

306



306


Repurchases of common stock - repurchase program

(5,105)



(1,569)


Shares repurchased for tax withholdings on vesting of restricted stock units

(411)



(317)


Short-term borrowings, original maturities of 90 days or less, net

959



—


Issuances of debt

1,049



—


Repayments of debt

(2,000)



—


Dividends paid

(3,102)



(3,041)


Other

(65)



70


Net cash used in financing activities

(8,369)



(4,551)


Net decrease in cash, cash equivalents, and restricted cash

(2,450)



(9)


Cash, cash equivalents, and restricted cash, beginning of period

9,942



11,812


Cash, cash equivalents, and restricted cash, end of period

$

7,492



$

11,803


Supplemental cash flow information:




Cash paid for interest

$

184



$

220


Cash paid for income taxes, net

$

2,320



$

2,142


 

CISCO SYSTEMS, INC.

REMAINING PERFORMANCE OBLIGATIONS

(In millions, except percentages)



January 29, 2022


October 30, 2021


January 23, 2021


Amount


Y/Y%


Amount


Y/Y%


Amount


Y/Y%

Product

$

13,532



16

%


$

13,384



18

%


$

11,666



17

%

Service

16,986



3

%


16,751



4

%


16,512



10

%

Total

$

30,518



8

%


$

30,135



10

%


$

28,178



13

%


We expect 53% of total RPO at January 29, 2022 will be recognized as revenue over the next 12 months.

 

CISCO SYSTEMS, INC.

DEFERRED REVENUE

(In millions)



January 29,
2022


October 30,
2021


January 23,
2021

Deferred revenue:






Product

$

9,767



$

9,681



$

8,332


Service

12,546



12,391



12,514


Total

$

22,313



$

22,072



$

20,846


Reported as:






Current

$

12,268



$

12,017



$

11,552


Noncurrent

10,045



10,055



9,294


Total

$

22,313



$

22,072



$

20,846


 

CISCO SYSTEMS, INC.

DIVIDENDS PAID AND REPURCHASES OF COMMON STOCK

(In millions, except per-share amounts)




DIVIDENDS


STOCK REPURCHASE PROGRAM


TOTAL

Quarter Ended


Per Share


Amount


Shares


Weighted-
Average Price
per Share


Amount


Amount

Fiscal 2022













January 29, 2022


$

0.37



$

1,541



82


$

58.36



$

4,824



$

6,365


October 30, 2021


$

0.37



$

1,561



5


$

56.49



$

256



$

1,817


Fiscal 2021













July 31, 2021


$

0.37



$

1,562



15


$

53.30



$

791



$

2,353


May 1, 2021


$

0.37



$

1,560



10


$

48.71



$

510



$

2,070


January 23, 2021


$

0.36



$

1,521



19


$

42.82



$

801



$

2,322


October 24, 2020


$

0.36



$

1,520



20


$

40.44



$

800



$

2,320


 

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GAAP TO NON-GAAP NET INCOME

(In millions)



Three Months Ended


Six Months Ended


January 29,
2022


January 23,
2021


January 29,
2022


January 23,
2021

GAAP net income

$

2,973



$

2,545



$

5,953



$

4,719


Adjustments to cost of sales:








Share-based compensation expense

81



68



150



133


Amortization of acquisition-related intangible assets

197



152



395



315


Acquisition-related/divestiture costs

1



1



2



2


Legal and indemnification settlements/charges

—



—



—



43


Total adjustments to GAAP cost of sales

279



221



547



493


Adjustments to operating expenses:








Share-based compensation expense

396



358



779



720


Amortization of acquisition-related intangible assets

79



39



163



75


Acquisition-related/divestiture costs

120



34



232



93


Significant asset impairments and restructurings

3



234



8



836


Total adjustments to GAAP operating expenses

598



665



1,182



1,724


Adjustments to interest and other income (loss), net:








Acquisition-related/divestiture costs

—



(2)



—



(2)


(Gains) and losses on equity investments

(100)



13



(319)



(35)


Total adjustments to GAAP interest and other income (loss), net

(100)



11



(319)



(37)


Total adjustments to GAAP income before provision for income taxes

777



897



1,410



2,180


Income tax effect of non-GAAP adjustments

(202)



(162)



(340)



(408)


Significant tax matters

—



83



—



83


Total adjustments to GAAP provision for income taxes

(202)



(79)



(340)



(325)


Non-GAAP net income

$

3,548



$

3,363



$

7,023



$

6,574


 

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GAAP TO NON-GAAP EPS



Three Months Ended


Six Months Ended


January 29,
2022


January 23,
2021


January 29,
2022


January 23,
2021

GAAP EPS

$

0.71



$

0.60



$

1.41



$

1.11


Adjustments to GAAP:








Share-based compensation expense

0.11



0.10



0.22



0.20


Amortization of acquisition-related intangible assets

0.07



0.05



0.13



0.09


Acquisition-related/divestiture costs

0.03



0.01



0.06



0.02


Legal and indemnification settlements/charges

—



—



—



0.01


Significant asset impairments and restructurings

—



0.06



—



0.20


(Gains) and losses on equity investments

(0.02)



—



(0.08)



(0.01)


Income tax effect of non-GAAP adjustments

(0.05)



(0.04)



(0.08)



(0.10)


Significant tax matters

—



0.02



—



0.02


Non-GAAP EPS

$

0.84



$

0.79



$

1.66



$

1.55



Amounts may not sum due to rounding.

 

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND NET INCOME

(In millions, except percentages)



Three Months Ended


January 29, 2022


Product
Gross
Margin


Service
Gross
Margin


Total
Gross
Margin


Operating
Expenses


Y/Y


Operating
Income


Y/Y


Interest
and
other
income
(loss),
net


Net
Income


Y/Y

GAAP amount

$

5,784



$

2,265



$

8,049



$

4,562



—%


$

3,487



8%


$

116



$

2,973



17%

% of revenue

61.8

%


67.3

%


63.3

%


35.9

%




27.4

%




0.9

%


23.4

%



Adjustments to GAAP amounts:

















Share-based compensation expense

29



52



81



396





477





—



477




Amortization of acquisition-related intangible assets

197



—



197



79





276





—



276




Acquisition/divestiture-related costs

1



—



1



120





121





—



121




Significant asset impairments and restructurings

—



—



—



3





3





—



3




(Gains) and losses on equity investments

—



—



—



—





—





(100)



(100)




Income tax effect/significant tax matters

—



—



—



—





—





—



(202)




Non-GAAP amount

$

6,011



$

2,317



$

8,328



$

3,964



2%


$

4,364



6%


$

16



$

3,548



6%

% of revenue

64.3

%


68.8

%


65.5

%


31.2

%




34.3

%




0.1

%


27.9

%






Three Months Ended


January 23, 2021


Product
Gross
Margin


Service
Gross
Margin


Total Gross
Margin


Operating
Expenses


Operating

Income


Interest
and other
income
(loss), net


Net

Income

GAAP amount

$

5,528



$

2,256



$

7,784



$

4,561



$

3,223



$

32



$

2,545


% of revenue

64.5

%


66.6

%


65.1

%


38.1

%


26.9

%


0.3

%


21.3

%

Adjustments to GAAP amounts:














Share-based compensation expense

25



43



68



358



426



—



426


Amortization of acquisition-related intangible assets

152



—



152



39



191



—



191


Acquisition/divestiture-related costs

1



—



1



34



35



(2)



33


Significant asset impairments and restructurings

—



—



—



234



234



—



234


(Gains) and losses on equity investments

—



—



—



—



—



13



13


Income tax effect/significant tax matters

—



—



—



—



—



—



(79)


Non-GAAP amount

$

5,706



$

2,299



$

8,005



$

3,896



$

4,109



$

43



$

3,363


% of revenue

66.6

%


67.9

%


66.9

%


32.6

%


34.4

%


0.4

%


28.1

%


Amounts may not sum and percentages may not recalculate due to rounding.

 

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND NET INCOME

(In millions, except percentages)



Six Months Ended


January 29, 2022


Product
Gross
Margin


Service
Gross
Margin


Total
Gross
Margin


Operating
Expenses


Y/Y


Operating
Income


Y/Y


Interest
and
other
income
(loss),
net


Net
Income


Y/Y

GAAP amount

$

11,640



$

4,462



$

16,102



$

9,177



(4)%


$

6,925



20%


$

335



$

5,953



26%

% of revenue

61.6

%


66.2

%


62.8

%


35.8

%




27.0

%




1.3

%


23.2

%



Adjustments to GAAP amounts:

















Share-based compensation expense

54



96



150



779





929





—



929




Amortization of acquisition-related intangible assets

395



—



395



163





558





—



558




Acquisition/divestiture-related costs

2



—



2



232





234





—



234




Significant asset impairments and restructurings

—



—



—



8





8





—



8




(Gains) and losses on equity investments

—



—



—



—





—





(319)



(319)




Income tax effect/significant tax matters

—



—



—



—





—





—



(340)




Non-GAAP amount

$

12,091



$

4,558



$

16,649



$

7,995



2%


$

8,654



8%


$

16



$

7,023



7%

% of revenue

64.0

%


67.6

%


65.0

%


31.2

%




33.8

%




0.1

%


27.4

%






Six Months Ended


January 23, 2021


Product
Gross
Margin


Service
Gross
Margin


Total
Gross
Margin


Operating
Expenses


Operating

Income


Interest
and other
income
(loss), net


Net

Income

GAAP amount

$

10,909



$

4,456



$

15,365



$

9,572



$

5,793



$

143



$

4,719


% of revenue

63.6

%


66.2

%


64.3

%


40.1

%


24.2

%


0.6

%


19.8

%

Adjustments to GAAP amounts:














Share-based compensation expense

49



84



133



720



853



—



853


Amortization of acquisition-related intangible assets

315



—



315



75



390



—



390


Acquisition/divestiture-related costs

1



1



2



93



95



(2)



93


Legal and indemnification settlements/charges

43



—



43



—



43



—



43


Significant asset impairments and restructurings

—



—



—



836



836



—



836


(Gains) and losses on equity investments

—



—



—



—



—



(35)



(35)


Income tax effect/significant tax matters

—



—



—



—



—



—



(325)


Non-GAAP amount

$

11,317



$

4,541



$

15,858



$

7,848



$

8,010



$

106



$

6,574


% of revenue

66.0

%


67.5

%


66.4

%


32.9

%


33.5

%


0.4

%


27.5

%


Amounts may not sum and percentages may not recalculate due to rounding.

 

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

EFFECTIVE TAX RATE

(In percentages)



Three Months Ended


Six Months Ended


January 29,
2022


January 23,
2021


January 29,
2022


January 23,
2021

GAAP effective tax rate

17.5

%


21.8

%


18.0

%


20.5

%

Total adjustments to GAAP provision for income taxes

1.5

%


(2.8)

%


1.0

%


(1.5)

%

Non-GAAP effective tax rate

19.0

%


19.0

%


19.0

%


19.0

%

 

GAAP TO NON-GAAP GUIDANCE








Q3 FY 2022


Gross Margin
Rate


Operating Margin
Rate


Earnings per
Share (1)

GAAP


61.5% - 62.5%


26.5% - 27.5%


$0.70 - $0.74

Estimated adjustments for:







Share-based compensation expense


0.5%


4.0%


$0.08 - $0.09

Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs


1.5%


2.0%


$0.05 - $0.06

Non-GAAP


63.5% - 64.5%


32.5% - 33.5%


$0.85 - $0.87




FY 2022


Earnings per
Share (1)

GAAP


$2.83 - $2.92

Estimated adjustments for:



Share-based compensation expense


$0.33 - $0.35

Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs


$0.27 - $0.29

(Gains) and losses on equity investments


($0.06)

Non-GAAP


$3.41 - $3.46


(1) Estimated adjustments to GAAP earnings per share are shown after income tax effects.

Except as noted above, this guidance does not include the effects of any future acquisitions/divestitures, asset impairments, restructurings, (gains) and losses on equity investments and significant tax matters or other events, which may or may not be significant unless specifically stated.

Forward Looking Statements, Non-GAAP Information and Additional Information
This release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events (such as our ability to deliver growth through our investments in innovation; the strength of our strategy; the continued momentum in our business; our growing pipeline and record backlog which we believe will convert into revenue in the coming quarters; our on-going transformation to accelerate our shift to more software and subscription-based recurring revenue; our significant growth opportunities and expanding addressable markets; and our commitment to returning excess capital to our shareholders and confidence in our ongoing cash flows) and the future financial performance of Cisco (including the guidance for Q3 FY 2022 and full year FY 2022) that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including: the impact of the COVID-19 pandemic and related public health measures; business and economic conditions and growth trends in the networking industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; overall information technology spending; the growth and evolution of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider market and other customer markets; the return on our investments in certain priorities, key growth areas, and in certain geographical locations, as well as maintaining leadership in Secure, Agile Networks and services; the timing of orders and manufacturing and customer lead times; significant supply constraints; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; variability of component costs; variations in sales channels, product costs or mix of products sold; our ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; our ability to achieve expected benefits of our partnerships; increased competition in our product and service markets, including the data center market; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks; product defects and returns; litigation involving patents, other intellectual property, antitrust, stockholder and other matters, and governmental investigations; our ability to achieve the benefits of restructurings and possible changes in the size and timing of related charges; cyber-attacks, data breaches or malware; vulnerabilities and critical security defects; terrorism; natural catastrophic events (including as a result of global climate change); any other pandemic or epidemic; our ability to achieve the benefits anticipated from our investments in sales, engineering, service, marketing and manufacturing activities; our ability to recruit and retain key personnel; our ability to manage financial risk, and to manage expenses during economic downturns; risks related to the global nature of our operations, including our operations in emerging markets; currency fluctuations and other international factors; changes in provision for income taxes, including changes in tax laws and regulations or adverse outcomes resulting from examinations of our income tax returns; potential volatility in operating results; and other factors listed in Cisco's most recent reports on Forms 10-Q and 10-K filed on November 23, 2021 and September 9, 2021, respectively. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco's most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. Cisco's results of operations for the three and six months ended January 29, 2022 are not necessarily indicative of Cisco's operating results for any future periods. Any projections in this release are based on limited information currently available to Cisco, which is subject to change. Although any such projections and the factors influencing them will likely change, Cisco will not necessarily update the information, since Cisco will only provide guidance at certain points during the year. Such information speaks only as of the date of this release.

This release includes non-GAAP net income, non-GAAP gross margins, non-GAAP operating expenses, non-GAAP operating income and margin, non-GAAP effective tax rates, non-GAAP interest and other income (loss), net, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non-GAAP basis.

These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco's results of operations in conjunction with the corresponding GAAP measures.

Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations.

For its internal budgeting process, Cisco's management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition-related/divestiture costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies, gains and losses on equity investments, the income tax effects of the foregoing and significant tax matters. Cisco's management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Cisco. In prior periods, Cisco has excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. From time to time in the future there may be other items that Cisco may exclude for purposes of its internal budgeting process and in reviewing its financial results. For additional information on the items excluded by Cisco from one or more of its non-GAAP financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission.

Annualized Recurring Revenue represents the annualized revenue run-rate of active subscriptions, term licenses, and maintenance contracts at the end of a reporting period, net of rebates to customers and partners as well as certain other revenue adjustments. Includes both revenue recognized ratably as well as upfront on an annualized basis.

About Cisco

Cisco (Nasdaq: CSCO) is the worldwide leader in technology that powers the Internet. Cisco inspires new possibilities by reimagining your applications, securing your data, transforming your infrastructure, and empowering your teams for a global and inclusive future. Discover more at newsroom.cisco.com and follow us on Twitter at @Cisco.

Copyright © 2022 Cisco and/or its affiliates. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. To view a list of Cisco trademarks, go to: www.cisco.com/go/trademarks. Third-party trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

RSS Feed for Cisco: https://newsroom.cisco.com/rss-feeds

Press Contact:


Investor Relations Contact:

Robyn Blum


Marilyn Mora

Cisco


Cisco

1 (408) 930-8548


1 (408) 527-7452

rojenkin@cisco.com


marilmor@cisco.com

 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/cisco-reports-second-quarter-earnings-301484162.html

SOURCE Cisco Systems, Inc.

Der finanzen.at Ratgeber für Aktien!
Wenn Sie mehr über das Thema Aktien erfahren wollen, finden Sie in unserem Ratgeber viele interessante Artikel dazu!
Jetzt informieren!

Nachrichten zu Cisco Inc.mehr Nachrichten

Analysen zu Cisco Inc.mehr Analysen

22.09.23 Cisco Overweight JP Morgan Chase & Co.
18.05.23 Cisco Neutral JP Morgan Chase & Co.
18.05.23 Cisco Outperform Credit Suisse Group
Eintrag hinzufügen
Hinweis: Sie möchten dieses Wertpapier günstig handeln? Sparen Sie sich unnötige Gebühren! Bei finanzen.net Brokerage handeln Sie Ihre Wertpapiere für nur 5 Euro Orderprovision* pro Trade? Hier informieren!
Es ist ein Fehler aufgetreten!

Newssuche

GO

Aktien in diesem Artikel

Cisco Inc. 56,21 -0,16% Cisco Inc.

Börse aktuell - Live Ticker

Vorweihnachtliche Zurückhaltung: ATX schlussendlich im Plus -- DAX geht schwächer aus dem Handel
Der heimische Aktienmarkt verbuchte am Montag moderate Gewinne, wohingegen sich der deutsche Aktienmarkt abwärts bewegte.

Nachrichten

Aktien ATX  DAX  EuroStoxx 50  Dow Jones  NASDAQ 100  Nikkei 225  S&P 500 

Kontakt  - Impressum - Werbung

Sitemap  - Datenschutz  - Disclaimer  - AGB  - Privatsphäre-Einstellungen