Cisco reported product revenue in the quarter that was 10% higher than last year.
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Shares of Cisco Systems fell in late trading Wednesday after reporting July quarter results and fiscal year 2022 guidance that largely matched expectations.
The stock was down 1.8% in after-hours trading at $54.
For the quarter, Cisco (ticker: CSCO) posted revenue of $13.12 billion, up 8% from a year ago and at the high end of the company’s forecast range of 6% to 8% growth. Street consensus had been $13.03 billion. Non-GAAP profit were 84 cents a share, toward the high end of the company’s guidance range of 81 to 85 cents a share. Street consensus called for 82 cents a share. Under generally accepted accounting principles, the company earned 71 cents a share, ahead of the company’s guidance range of 64 to 69 cents a share.
Product revenue was $9.7 billion, up 10% year over year, while service revenue was $3.4 billion, up 3%. Revenues were up 8% in the Americas, 6% in EMEA (Europe, Middle East and Africa) and 13% in Asia. Infrastructure platforms revenue was up 13%, while applications revenue was off 1% and security revenue was up 1%.
For the full fiscal year, revenue was $49.8 billion, up 1% from a year ago. Non-GAAP profit were flat at $3.22 a share.
The company said orders in the quarter were up double-digits across all customer markets and geographies, with product orders up 31%, the strongest growth in more than a decade.
Gross margins on a non-GAAP basis expanded to 65.6% from 65% a year ago, with product gross margin improving to 65% from 63.2%.
Cisco said it bought back $791 million of stock in the quarter. The company has $7.9 billion remaining on its current repurchase authorization.
For the fiscal first quarter ending in October, Cisco projects revenue growth of 7.5% to 9.5%, with profit of 79 to 81 cents a share on a non-GAAP basis. Street consensus called for profit of 81 cents. On a GAAP basis, the company projects profit of 61 to 66 cents a share.
Cisco sees full-year fiscal 2022 revenue up 5% to 7%, a little higher than the Street consensus forecast for 4.4% growth. At the middle of the range, 6% would imply revenue of $52.8 billion, a little above the Street consensus at $51.9 billion. Cisco sees full-year profit of $3.38 to $3.45 a share, with the midpoint a little above the Street consensus at $3.40.
“We continue to see great momentum in our business as customers are looking to modernize their organizations for agility and resiliency,” Cisco CEO Chuck Robbins said. “The demand for Cisco technology is strong with our Q4 performance marking the highest product order growth in over a decade. With the power of our portfolio, we are well positioned to help our customers accelerate their digital transformation and thrive in a hybrid world.”
Write to Eric J. Savitz at [email protected]
