View all news August 17, 2022 SAN JOSE, Calif., Aug. 17, 2022 /PRNewswire/ -- News Summary : Cisco today reported fourth quarter and fiscal year results for the period ended July 30, 2022. Cisco reported fourth quarter revenue of $13.1 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.8 billion or $0.68 per share, and non-GAAP net income of $3.4 billion or $0.83 per share. "We had a strong end to our fiscal year thanks to our Q4 performance. Our teams executed well in the midst of an incredibly dynamic environment, resulting in the highest full year non-GAAP earnings per share in the history of the company," said Chuck Robbins, chair and CEO of Cisco. "Full year product orders and backlog are both at record highs and reflect the strong demand we continue to see for our innovation and the overall value we bring to our customers as they accelerate their digital transformation." "Total revenue exceeded our expectations in Q4, as a result of our strong execution and the numerous initiatives we have taken to reduce the impact of the global supply situation," said Scott Herren, CFO of Cisco. "Our operational discipline is reflected in our healthy operating margin and strong cash flow generation, enabling us to return nearly $4 billion to our shareholders in Q4. And we continue to make good progress in our business model transformation with RPO of over $31 billion, which, coupled with our record backlog, provide us with substantial visibility and confidence in our future revenue." Q4 GAAP Results Q4 FY 2022 Q4 FY 2021 Vs. Q4 FY 2021 Revenue $ 13.1 billion $ 13.1 billion —% Net Income $ 2.8 billion $ 3.0 billion (6)% Diluted Earnings per Share (EPS) $ 0.68 $ 0.71 (4)% Q4 Non-GAAP Results Q4 FY 2022 Q4 FY 2021 Vs. Q4 FY 2021 Net Income $ 3.4 billion $ 3.6 billion (3)% EPS $ 0.83 $ 0.84 (1)% Fiscal Year GAAP Results FY 2022 FY 2021 Vs. FY 2021 Revenue $ 51.6 billion $ 49.8 billion 3% Net Income $ 11.8 billion $ 10.6 billion 12% EPS $ 2.82 $ 2.50 13% Fiscal Year Non-GAAP Results FY 2022 FY 2021 Vs. FY 2021 Net Income $ 14.1 billion $ 13.6 billion 3% EPS $ 3.36 $ 3.22 4% 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." Financial Summary All comparative percentages are on a year-over-year basis unless otherwise noted. Q4 FY 2022 Highlights Revenue -- Total revenue was flat at $13.1 billion, with both product revenue and service revenue flat year over year. Revenue by geographic segment was: Americas down 3%, EMEA up 8%, and APJC down 2%. Product revenue performance was led by growth in End-to-End Security up 20%, Optimized Application Experiences up 8%, and Collaboration up 2%. Secure, Agile Networks was down 1% and Internet for the Future was down 10%. Gross Margin -- On a GAAP basis, total gross margin, product gross margin, and service gross margin were 61.3%, 59.1%, and 67.5%, respectively, as compared with 63.6%, 62.7%, and 66.2%, respectively, in the fourth quarter of fiscal 2021. On a non-GAAP basis, total gross margin, product gross margin, and service gross margin were 63.3%, 61.3%, and 69.0%, respectively, as compared with 65.6%, 65.0%, and 67.4%, respectively, in the fourth quarter of fiscal 2021. Total gross margins by geographic segment were: 62.6% for the Americas, 64.4% for EMEA and 63.6% for APJC. Operating Expenses -- On a GAAP basis, operating expenses were $4.6 billion, down 4%, and were 35.0% of revenue. Non-GAAP operating expenses were $4.1 billion, down 4%, and were 30.9% of revenue. Operating Income -- GAAP operating income was $3.4 billion, down 4%, with GAAP operating margin of 26.2%. Non-GAAP operating income was $4.2 billion, down 4%, with non-GAAP operating margin at 32.4%. Provision for Income Taxes -- The GAAP tax provision rate was 17.6%. The non-GAAP tax provision rate was 18.5%. Net Income and EPS -- On a GAAP basis, net income was $2.8 billion, a decrease of 6%, and EPS was $0.68, a decrease of 4%. On a non-GAAP basis, net income was $3.4 billion, a decrease of 3%, and EPS was $0.83, a decrease of 1%. Cash Flow from Operating Activities -- $3.7 billion for the fourth quarter of fiscal 2022, a decrease of 18% compared with $4.5 billion for the fourth quarter of fiscal 2021. FY 2022 Highlights Revenue -- Total revenue was $51.6 billion, an increase of 3%. Net Income and EPS -- On a GAAP basis, net income was $11.8 billion, an increase of 12%, and EPS was $2.82, an increase of 13%. On a non-GAAP basis, net income was $14.1 billion, an increase of 3% compared to fiscal 2021, and EPS was $3.36, an increase of 4%. Cash Flow from Operating Activities -- $13.2 billion for fiscal 2022, a decrease of 14% compared with fiscal 2021. Balance Sheet and Other Financial Highlights Cash and Cash Equivalents and Investments -- $19.3 billion at the end of the fourth quarter of fiscal 2022, compared with $20.1 billion at the end of the third quarter of fiscal 2022, and compared with $24.5 billion at the end of fiscal 2021. Remaining Performance Obligations (RPO) -- $31.5 billion, up 2% in total, with 54% of this amount to be recognized as revenue over the next 12 months. Product RPO were up 6% and service RPO were down 1%. Deferred Revenue -- $23.3 billion, up 5% in total, with deferred product revenue up 11%. Deferred service revenue was up 1%. Capital Allocation -- In the fourth quarter of fiscal 2022, we returned $4.0 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.38 per common share, or $1.6 billion, and repurchased approximately 54 million shares of common stock under our stock repurchase program at an average price of $44.02 per share for an aggregate purchase price of $2.4 billion. The remaining authorized amount for stock repurchases under the program is $15.2 billion with no termination date. Guidance Cisco expects to achieve the following results for the first quarter of fiscal 2023: Q1 FY 2023 Revenue 2% - 4% growth Y/Y Non-GAAP gross margin rate 63% - 64% Non-GAAP operating margin rate 31.5% - 32.5% Non-GAAP EPS $0.82 - $0.84 Cisco estimates that GAAP EPS will be $0.64 to $0.68 for the first quarter of fiscal 2023. Cisco expects to achieve the following results for fiscal 2023: FY 2023 Revenue 4% - 6% growth Y/Y Non-GAAP EPS $3.49 - $3.56 Cisco estimates that GAAP EPS will be $2.77 to $2.88for fiscal 2023. Our Q1 FY 2023 and FY 2023 guidance assumes an effective tax provision rate of 19% for GAAP and 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: CISCO SYSTEMS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per-share amounts) (Unaudited) Three Months Ended Fiscal Year Ended July 30, July 31, July 30, July 31, REVENUE: Product $ 9,688 $ 9,716 $ 38,018 $ 36,014 Service 3,414 3,410 13,539 13,804 Total revenue 13,102 13,126 51,557 49,818 COST OF SALES: Product 3,966 3,628 14,814 13,300 Service 1,111 1,154 4,495 4,624 Total cost of sales 5,077 4,782 19,309 17,924 GROSS MARGIN 8,025 8,344 32,248 31,894 OPERATING EXPENSES: Research and development 1,682 1,713 6,774 6,549 Sales and marketing 2,349 2,448 9,085 9,259 General and administrative 489 521 2,101 2,152 Amortization of purchased intangible assets 73 79 313 215 Restructuring and other charges (2) 8 6 886 Total operating expenses 4,591 4,769 18,279 19,061 OPERATING INCOME 3,434 3,575 13,969 12,833 Interest income 129 130 476 618 Interest expense (93) (98) (360) (434) Other income (loss), net (54) 128 392 245 Interest and other income (loss), net (18) 160 508 429 INCOME BEFORE PROVISION FOR INCOME TAXES 3,416 3,735 14,477 13,262 Provision for income taxes 601 726 2,665 2,671 NET INCOME $ 2,815 $ 3,009 $ 11,812 $ 10,591 Net income per share: Basic $ 0.68 $ 0.71 $ 2.83 $ 2.51 Diluted $ 0.68 $ 0.71 $ 2.82 $ 2.50 Shares used in per-share calculation: Basic 4,128 4,216 4,170 4,222 Diluted 4,137 4,238 4,192 4,236 CISCO SYSTEMS, INC. REVENUE BY SEGMENT (In millions, except percentages) July 30, 2022 Three Months Ended Fiscal Year Ended Amount Y/Y% Amount Y/Y% Revenue : Americas $ 7,470 (3)% $ 29,814 2% EMEA 3,577 8% 13,715 6% APJC 2,055 (2)% 8,027 4% Total $ 13,102 —% $ 51,557 3% Amounts may not sum and percentages may not recalculate due to rounding. CISCO SYSTEMS, INC. GROSS MARGIN PERCENTAGE BY SEGMENT (In percentages) July 30, 2022 Three Months Ended Fiscal Year Ended Gross Margin Percentage : Americas 62.6% 64.1% EMEA 64.4% 65.4% APJC 63.6% 65.3% CISCO SYSTEMS, INC. REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES (In millions, except percentages) July 30, 2022 Three Months Ended Fiscal Year Ended Amount Y/Y % Amount Y/Y % Revenue : Secure, Agile Networks $ 6,094 (1)% $ 23,829 5% Internet for the Future 1,257 (10)% 5,278 17% Collaboration 1,164 2% 4,472 (5)% End-to-End Security 984 20% 3,699 9% Optimized Application Experiences 185 8% 729 11% Other Products 3 (22)% 11 (29)% Total Product 9,688 —% 38,018 6% Services 3,414 —% 13,539 (2)% Total $ 13,102 —% $ 51,557 3% Amounts may not sum and percentages may not recalculate due to rounding. CISCO SYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited) July 30, July 31, ASSETS Current assets: Cash and cash equivalents $ 7,079 $ 9,175 Investments 12,188 15,343 Accounts receivable, net of allowance of $83 at July30, 2022 and $109 at July31, 2021 6,622 5,766 Inventories 2,568 1,559 Financing receivables, net 3,905 4,380 Other current assets 4,355 2,889 Total current assets 36,717 39,112 Property and equipment, net 1,997 2,338 Financing receivables, net 4,009 4,884 Goodwill 38,304 38,168 Purchased intangible assets, net 2,569 3,619 Deferred tax assets 4,449 4,360 Other assets 5,957 5,016 TOTAL ASSETS $ 94,002 $ 97,497 LIABILITIES AND EQUITY Current liabilities: Short-term debt $ 1,099 $ 2,508 Accounts payable 2,281 2,362 Income taxes payable 961 801 Accrued compensation 3,316 3,818 Deferred revenue 12,784 12,148 Other current liabilities 5,199 4,620 Total current liabilities 25,640 26,257 Long-term debt 8,416 9,018 Income taxes payable 7,725 8,538 Deferred revenue 10,480 10,016 Other long-term liabilities 1,968 2,393 Total liabilities 54,229 56,222 Total equity 39,773 41,275 TOTAL LIABILITIES AND EQUITY $ 94,002 $ 97,497 CISCO SYSTEMS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Fiscal Year Ended July 30, July 31, Cash flows from operating activities: Net income $ 11,812 $ 10,591 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization, and other 1,957 1,862 Share-based compensation expense 1,886 1,761 Provision (benefit) for receivables 55 (6) Deferred income taxes (309) (384) (Gains) losses on divestitures, investments and other, net (453) (354) Change in operating assets and liabilities, net of effects of acquisitions and divestitures: Accounts receivable (1,009) (107) Inventories (1,030) (244) Financing receivables 1,241 1,577 Other assets (1,615) (797) Accounts payable (55) (53) Income taxes, net (690) (549) Accrued compensation (427) 643 Deferred revenue 1,328 1,560 Other liabilities 535 (46) Net cash provided by operating activities 13,226 15,454 Cash flows from investing activities: Purchases of investments (6,070) (9,328) Proceeds from sales of investments 2,660 3,373 Proceeds from maturities of investments 5,686 8,409 Acquisitions, net of cash and cash equivalents acquired and divestitures (373) (7,038) Purchases of investments in privately held companies (186) (175) Return of investments in privately held companies 237 194 Acquisition of property and equipment (477) (692) Proceeds from sales of property and equipment 91 28 Other (15) (56) Net cash provided by (used in) investing activities 1,553 (5,285) Cash flows from financing activities: Issuances of common stock 660 643 Repurchases of common stock - repurchase program (7,689) (2,877) Shares repurchased for tax withholdings on vesting of restricted stock units (692) (636) Short-term borrowings, original maturities of 90 days or less, net 606 (5) Issuances of debt 1,049 — Repayments of debt (3,550) (3,000) Dividends paid (6,224) (6,163) Other (302) (1) Net cash used in financing activities (16,142) (12,039) Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents (1,363) (1,870) Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of fiscal year 9,942 11,812 Cash, cash equivalents, restricted cash and restricted cash equivalents, end of fiscal year $ 8,579 $ 9,942 Supplemental cash flow information: Cash paid for interest $ 355 $ 438 Cash paid for income taxes, net $ 3,663 $ 3,604 CISCO SYSTEMS, INC. REMAINING PERFORMANCE OBLIGATIONS (In millions, except percentages) July 30, 2022 April 30, 2022 July 31, 2021 Amount Y/Y % Amount Y/Y % Amount Y/Y % Product $ 14,090 6% $ 13,416 13% $ 13,270 18% Service 17,449 (1)% 16,789 3% 17,623 3% Total $ 31,539 2% $ 30,205 7% $ 30,893 9% We expect 54% of total RPO at July30, 2022 will be recognized as revenue over the next 12 months. CISCO SYSTEMS, INC. DEFERRED REVENUE (In millions) July 30, April 30, July 31, Deferred revenue: Product $ 10,427 $ 9,835 $ 9,416 Service 12,837 12,458 12,748 Total $ 23,264 $ 22,293 $ 22,164 Reported as: Current $ 12,784 $ 12,249 $ 12,148 Noncurrent 10,480 10,044 10,016 Total $ 23,264 $ 22,293 $ 22,164 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- Amount Amount Fiscal 2022 July 30, 2022 $ 0.38 $ 1,567 54 $ 44.02 $ 2,402 $ 3,969 April 30, 2022 $ 0.38 $ 1,555 5 $ 54.20 $ 252 $ 1,807 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. RECONCILIATIONSOF GAAP TO NON-GAAP MEASURES GAAP TO NON-GAAP NET INCOME (In millions) Three Months Ended Fiscal Year Ended July 30, July 31, July 30, July 31, GAAP net income $ 2,815 $ 3,009 $ 11,812 $ 10,591 Adjustments to cost of sales: Share-based compensation expense 78 67 311 275 Amortization of acquisition-related intangible assets 162 199 733 698 Acquisition-related/divestiture costs 24 1 27 4 Russia-Ukraine war costs 2 — 7 — Legal and indemnification settlements/charges — — — 43 Total adjustments to GAAP cost of sales 266 267 1,078 1,020 Adjustments to operating expenses: Share-based compensation expense 401 357 1,574 1,460 Amortization of acquisition-related intangible assets 73 79 328 215 Acquisition-related/divestiture costs 45 109 306 288 Russia-Ukraine war costs 22 — 84 — Significant asset impairments and restructurings (2) 8 6 886 Total adjustments to GAAP operating expenses 539 553 2,298 2,849 Adjustments to interest and other income (loss), net: Acquisition-related/divestiture costs — — — 4 (Gains) and losses on equity investments — (154) (478) (285) Total adjustments to GAAP interest and other income (loss), net — (154) (478) (281) Total adjustments to GAAP income before provision for income taxes 805 666 2,898 3,588 Income tax effect of non-GAAP adjustments (181) (199) (616) (702) Significant tax matters — 76 — 159 Total adjustments to GAAP provision for income taxes (181) (123) (616) (543) Non-GAAP net income $ 3,439 $ 3,552 $ 14,094 $ 13,636 CISCO SYSTEMS, INC. RECONCILIATIONSOF GAAP TO NON-GAAP MEASURES GAAP TO NON-GAAP EPS Three Months Ended Fiscal Year Ended July 30, July 31, July 30, July 31, GAAP EPS $ 0.68 $ 0.71 $ 2.82 $ 2.50 Adjustments to GAAP: Share-based compensation expense 0.12 0.10 0.45 0.41 Amortization of acquisition-related intangible assets 0.06 0.07 0.25 0.22 Acquisition-related/divestiture costs 0.02 0.03 0.08 0.07 Russia-Ukraine war costs 0.01 — 0.02 — Legal and indemnification settlements/charges — — — 0.01 Significant asset impairments and restructurings — — — 0.21 (Gains) and losses on equity investments — (0.04) (0.11) (0.07) Income tax effect of non-GAAP adjustments (0.04) (0.05) (0.15) (0.17) Significant tax matters — 0.02 — 0.04 Non-GAAP EPS $ 0.83 $ 0.84 $ 3.36 $ 3.22 Amounts may not sum due to rounding. CISCO SYSTEMS, INC. RECONCILIATIONSOF 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 July 30, 2022 Product Service Total Operating Y/Y Operating Y/Y Interest Net Y/Y GAAP amount $ 5,722 $ 2,303 $ 8,025 $ 4,591 (4)% $ 3,434 (4)% $ (18) $ 2,815 (6)% % of revenue 59.1% 67.5% 61.3% 35.0% 26.2% (0.1)% 21.5% Adjustments to GAAP amounts: Share-based compensation 28 50 78 401 479 — 479 Amortization of acquisition- 162 — 162 73 235 — 235 Acquisition/divestiture-related 24 — 24 45 69 — 69 Russia-Ukraine war costs — 2 2 22 24 — 24 Significant asset impairments — — — (2) (2) — (2) (Gains) and losses on equity — — — — — — — Income tax effect/significant tax — — — — — — (181) Non-GAAP amount $ 5,936 $ 2,355 $ 8,291 $ 4,052 (4)% $ 4,239 (4)% $ (18) $ 3,439 (3)% % of revenue 61.3% 69.0% 63.3% 30.9% 32.4% (0.1)% 26.2% Three Months Ended July 31, 2021 Product Service Total Operating Operating Income Interest Net Income GAAP amount $ 6,088 $ 2,256 $ 8,344 $ 4,769 $ 3,575 $ 160 $ 3,009 % of revenue 62.7% 66.2% 63.6% 36.3% 27.2% 1.2% 22.9% Adjustments to GAAP amounts: Share-based compensation expense 24 43 67 357 424 — 424 Amortization of acquisition-related intangible assets 199 — 199 79 278 — 278 Acquisition/divestiture-related costs 1 — 1 109 110 — 110 Significant asset impairments and restructurings — — — 8 8 — 8 (Gains) and losses on equity investments — — — — — (154) (154) Income tax effect/significant tax matters — — — — — — (123) Non-GAAP amount $ 6,312 $ 2,299 $ 8,611 $ 4,216 $ 4,395 $ 6 $ 3,552 % of revenue 65.0% 67.4% 65.6% 32.1% 33.5% —% 27.1% Amounts may not sum and percentages may not recalculate due to rounding. CISCO SYSTEMS, INC. RECONCILIATIONSOF GAAP TO NON-GAAP MEASURES GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND NET INCOME (In millions, except percentages) Fiscal Year Ended July 30, 2022 Product Service Total Operating Y/Y Operating Y/Y Interest Net Y/Y GAAP amount $ 23,204 $ 9,044 $ 32,248 $ 18,279 (4)% $ 13,969 9% $ 508 $ 11,812 12% % of revenue 61.0% 66.8% 62.5% 35.5% 27.1% 1.0% 22.9% Adjustments to GAAP amounts: Share-based compensation 112 199 311 1,574 1,885 — 1,885 Amortization of acquisition- 733 — 733 328 1,061 — 1,061 Acquisition/divestiture-related 27 — 27 306 333 — 333 Russia-Ukraine war costs 4 3 7 84 91 — 91 Significant asset impairments and — — — 6 6 — 6 (Gains) and losses on equity — — — — — (478) (478) Income tax effect/significant tax — — — — — — (616) Non-GAAP amount $ 24,080 $ 9,246 $ 33,326 $ 15,981 (1)% $ 17,345 4% $ 30 $ 14,094 3% % of revenue 63.3% 68.3% 64.6% 31.0% 33.6% 0.1% 27.3% Fiscal Year Ended July 31, 2021 Product Service Total Operating Operating Income Interest Net Income GAAP amount $ 22,714 $ 9,180 $ 31,894 $ 19,061 $ 12,833 $ 429 $ 10,591 % of revenue 63.1% 66.5% 64.0% 38.3% 25.8% 0.9% 21.3% Adjustments to GAAP amounts: Share-based compensation expense 99 176 275 1,460 1,735 — 1,735 Amortization of acquisition-related intangible assets 698 — 698 215 913 — 913 Acquisition/divestiture-related costs 3 1 4 288 292 4 296 Legal and indemnification settlements/charges 43 — 43 — 43 — 43 Significant asset impairments and restructurings — — — 886 886 — 886 (Gains) and losses on equity investments — — — — — (285) (285) Income tax effect/significant tax matters — — — — — — (543) Non-GAAP amount $ 23,557 $ 9,357 $ 32,914 $ 16,212 $ 16,702 $ 148 $ 13,636 % of revenue 65.4% 67.8% 66.1% 32.5% 33.5% 0.3% 27.4% Amounts may not sum and percentages may not recalculate due to rounding. CISCO SYSTEMS, INC. RECONCILIATIONSOF GAAP TO NON-GAAP MEASURES EFFECTIVE TAX RATE (In percentages) Three Months Ended Fiscal Year Ended July 30, July 31, July 30, July 31, GAAP effective tax rate 17.6% 19.4% 18.4% 20.1% Total adjustments to GAAP provision for income taxes 0.9% (0.1)% 0.5% (1.0)% Non-GAAP effective tax rate 18.5% 19.3% 18.9% 19.1% GAAP TO NON-GAAP GUIDANCE Q1 FY 2023 Gross Margin Operating Margin Earnings per GAAP 61% - 62% 25.5% - 26.5% $0.64 - $0.68 Estimated adjustments for: Share-based compensation expense 1.0% 4.0% $0.10 - $0.11 Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs 1.0% 2.0% $0.06 - $0.07 Non-GAAP 63% - 64% 31.5% - 32.5% $0.82 - $0.84 FY 2023 Earnings per GAAP $2.77 - $2.88 Estimated adjustments for: Share-based compensation expense $0.46 - $0.48 Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs $0.22 - $0.24 Non-GAAP $3.49 - $3.56 (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, Russia-Ukraine war costs, 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 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, Russia-Ukraine war costs, 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 leaderin technologythat powers the Internet. Cisco inspires new possibilities by reimagining your applications, securing your data, transforming your infrastructure, and empowering your teamsfor 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 SOURCE Cisco Systems, Inc. Categories: Press Releases View all news CISCO REPORTS FOURTH QUARTER AND FISCAL YEAR 2022 EARNINGS
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Share (1)
Share (1)
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 execute in an incredibly dynamic environment, the success of numerous initiatives we have taken to reduce the impact of the global supply situation, the success of our strategy and confidence in our long-term growth, the fundamental drivers across our business being strong, strong demand for our innovation and the solutions we bring to our customers as they accelerate their digital transformation resulting in record backlogs, continued progress on our business model transformation shifting to more software and subscriptions, 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 Q1 FY 2023 and full year FY 2023) 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 May 25, 2022 and September9, 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 months and the year ended July30, 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.
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CISCO REPORTS FOURTH QUARTER AND FISCAL YEAR 2022 EARNINGS (2023)
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