Summary
Cisco Systems, Inc. (CSCO) reported its annual results for the fiscal year ended July 31, 2021. The company experienced a modest 1% increase in total revenue compared to the previous fiscal year, reaching $49.8 billion. This growth was driven by a 4% increase in service revenue, while product revenue remained flat. Geographically, revenue saw growth in EMEA and APJC segments, while the Americas remained flat. The company's strategic priorities include reimagining applications, powering hybrid work, transforming infrastructure, and securing the enterprise. Cisco continues its business model transformation, with software and subscription-based offerings showing growth, indicating a strategic shift towards recurring revenue streams. The company faced a challenging macroeconomic environment, further impacted by the COVID-19 pandemic, which led to supply chain constraints and cost pressures that affected product gross margins. Despite these challenges, Cisco demonstrated resilience, maintaining strong cash flow from operations and returning significant capital to shareholders through dividends and stock repurchases. The company ended the fiscal year with a robust cash position, underscoring its financial stability. Cisco also highlighted ongoing investments in research and development to drive future innovation and maintain its competitive edge in the evolving technology landscape.
Financial Highlights
57 data points| Revenue | $49.82B |
| Cost of Revenue | $17.92B |
| Gross Profit | $31.89B |
| R&D Expenses | $6.55B |
| Operating Expenses | $19.06B |
| Operating Income | $12.83B |
| Interest Expense | $434.00M |
| Net Income | $10.59B |
| EPS (Basic) | $2.51 |
| EPS (Diluted) | $2.50 |
| Shares Outstanding (Basic) | 4.22B |
| Shares Outstanding (Diluted) | 4.24B |
Key Highlights
- 1Total revenue increased by 1% year-over-year to $49.8 billion.
- 2Service revenue grew by 4%, while product revenue was flat, reflecting a shift towards services.
- 3Security product revenue saw a significant increase of 7%, indicating strong performance in this segment.
- 4The company continued to invest in its business model transformation, with total software revenue increasing by 7% and subscription revenue up 15%.
- 5Free cash flow remained strong at $14.76 billion, demonstrating efficient operations and cash generation.
- 6Cisco returned $9.1 billion to shareholders through dividends and stock repurchases, highlighting its commitment to shareholder returns.
- 7The company actively managed supply chain challenges, though they contributed to a slight decrease in product gross margin and increased inventory levels.