Cisco Systems (NASDAQ: CSCO) is 5% doctors after exceeding expectations with its fiscal Q4 revenue but issuing downbeat guidance for the current quarter, it was the start of its new fiscal year.
Revenue fell 9% to $ 12.2B, with declines across all regions, and non-GAAP EPS fell 4% to $ 0.80.
Security was once again a bright spot for revenue (with a 10% gain), but its core infrastructure platform business dipped with double digits.
The company has achieved its goal of drawing more than half of its revenue from software and services, it says.
“We performed well in Q4, delivering strong margins despite the very challenging environment,” says CFO Kelly Kramer. “Software subscriptions now account for 78% of our software revenue and remaining performance commitments remained strong in the quarter, reflecting the strength of our software and services portfolio.”
Geo Revenue: Americas, $ 7.19 B (down 12%); EMEA, $ 3.11 B (6% down); APJC, $ 1.86B (7% down).
Revenue by Type: Infrastructure Platforms, $ 6.63 B (16% down); Applications, $ 1.36B (9% down); Security, $ 814M (10% up); Other products, $ 35M (17% down); Services, $ 3.32B.
For fiscal Q1 2021, it leads to a revenue decline of 9-11% year-over-year, with gross margin of 64-65%, business margin of 30-31%, and EPS of $ 0.69- $ 0.71 (below consensus for $ 0.76 ).
That revenue guidance points to $ 11.71B- $ 11.98B, below consensus for $ 12.29B.
Conference call to arrive ET at 4:30 p.m.
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