Cisco Systems beats by $0.03, reports revs in-line; guides Q1 EPS in-line, revs below consensus
--> -1.3% in after hours
Reports Q4 (Jul) earnings of $0.63 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.60; revenues fell 1.6% year/year to $12.64 bln vs the $12.57 bln Capital IQ Consensus.
* Revenue by geographic segment:
- Americas up 3%
- EMEA up 3%
- APJC down 2%
* Product Revenue
- Security at 16%
- Collaboration, Wireless and Switching product revenue increased by 6%, 5%, and 2%, respectively
- Service Provider Video, NGN Routing and Data Center product revenue decreased by 12%, 6%, and 1%, respectively
* Non-GAAP total gross margin and product gross margin were 64.6% and 63.9% (Guidance for 63-64%), respectively. The increase in non-GAAP product gross margin compared with 63.2% in the fourth quarter of fiscal 2015 was primarily due to continued productivity improvement and to a lesser extent product mix, partially offset by pricing.
- Deferred Revenue was $16.5 billion, up 8% in total, with deferred product revenue up 8%, driven largely by subscription-based and software offerings, and deferred service revenue was up 9%.
- Product Backlog was approximately $4.6 billion at the end of fiscal 2016, an increase of 1% compared with the balance at the end of fiscal 2015 (excluding the SP Video CPE Business).
- Days Sales Outstanding in Accounts Receivable (DSO) was 42 days at the end of the fourth quarter of fiscal 2016, compared with 38 days at the end of the fourth quarter of fiscal 2015.
* Co issues guidance for Q1, sees EPS of 0.58-0.60, excluding non-recurring items, vs. $0.60 Capital IQ Consensus Estimate; sees Q1 revs of -1-1% y/y (Approx $12.15-12.39 bln) vs. $12.49 bln Capital IQ Consensus Estimate. Revenue normalized to exclude SP Video CPE Business for Q1 FY2016)
* Sees Q1 Gross Margin in the range of 63-64%.