Financial Report card - Report on Cisco Systems, Inc.

NEW YORK, September 14, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Cisco Systems, Inc. (NASDAQ: CSCO). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/reports?keyword=CSCO

Highlights from our CSCO Report include:

• Top-line Review - In a press release dated August 12, 2015, networking giant, Cisco Systems, Inc. reported its Q4 2015 financial results. The technology company reported revenue of $12.8 billion, up by 3.9% Y-o-Y. As per a same day Reuters report, analysts on average were expecting revenue of $12.55 billion for the quarter. Revenue growth by segment was strongest in the Americas, up by 7% Y-o-Y to $7.80 billion while in the EMEA and Asia Pacific, Japan and China (APJC) regions, growth was relatively flat at $3.1 billion and $1.9 billion, respectively. Cisco's Data Center and Collaboration business segments reported the strongest revenue growth rate of 14% Y-o-Y for each. Switching and NGN Routing grew by 2% and 3%, respectively.

• Bottom-line Review - On a GAAP basis, total gross margin, product gross margin, and service gross margin were at 60.2%, 59.0% and 64.5%, respectively. Total gross margins by geographic segment were - 62.7% for the Americas, 62.1% for EMEA, and 59.5% for APJC. Meanwhile, Cisco's GAAP operating margin was 22.4%. On a GAAP basis, net income was $2.3 billion, up 3.2% YoY and Diluted EPS was $0.45, up 4.7% YoY. On a non-GAAP basis, net income was $3.0 billion, up by 6% Y-o-Y and EPS was $0.59, up by 7%. As per the Reuters report, analysts on average were expecting profit of 56 cents per share.

• Management Note - Cisco's CEO Chuck Robbins, stated "We closed out our fiscal year with record revenues and record non-GAAP EPS, for both Q4 and FY15. I'm particularly pleased with the strong growth of deferred revenue which shows we are very effectively driving our business to a more predictable software-based business model, at the same time as growing revenues and earnings". He added, "These strong results show what we are capable of when we're focused, and you can expect us to continue to drive the evolution of our portfolio to maximize the value we bring to customers in today's rapidly changing market."

• Guidance for Q1 2016 - For the first quarter of fiscal 2016, Cisco expects revenues to increase in the range of 2% to 4% Y-o-Y. Non-GAAP gross margin is estimated to be within 61-62% and non-GAAP operating margin is likely to be in the range of 28-29%. The Company expects Non GAAP tax provision rate of 23%, yielding non-GAAP earnings per share in the range of $0.55-$0.57. Further, Cisco expects that GAAP EPS will be lower than non-GAAP EPS by $0.11 to $0.15 per share.

To find out how this influences our rating on Cisco Systems, Inc., read the full report in its entirety here: http://www.aciassociation.com/reports?keyword=CSCO

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