Cisco reported flat revenue growth at the end of the fourth fiscal quarter. Net income down 6%
Cisco reported fourth quarter and fiscal year results for the period ended July 30, 2022 that were above estimates, with fourth-quarter revenue of $13.1 billion, net income of $2.8 billion or $0.68 per share.
Total revenue was flat, with both product revenue and service revenue flat year over year. Revenue by geographic segment was down 3% in Americas, EMEA up 8%, and Asia & Pacific 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 for product and service was 59.1%, and 67.5%, respectively, as compared with 62.7%, and 66.2%, in the fourth quarter of fiscal 2021.
Operating Income was $3.4 billion, down 4%, with operating margin of 26.2%.
„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.”
For the first quarter of 2023, Cisco expects revenue to grow between 2% – 4% yoy and operating margin rate 31.5% – 32.5%.
Cisco shares are down 26% this year.