Typography

Cisco reported third quarter results for the period ended May 1, 2021 with revenue of $12.8 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.9 billion or $0.68 per share, and non-GAAP net income of $3.5 billion or $0.83 per share.

“Cisco had a great quarter with strong demand across the business,” said Chuck Robbins, chairman and CEO of Cisco. “We are confident in our strategy and our ability to lead the next phase of the recovery as our customers accelerate their adoption of hybrid work, digital transformation, cloud, and continued strong uptake of our subscription-based offerings.”

“We executed well with strong product orders, and solid growth in revenue, net income, and EPS,” said Scott Herren, CFO of Cisco.  “Our investments in innovation and accelerated shift to more software offerings and subscriptions led to double-digit growth in deferred revenue, remaining performance obligations and higher levels of recurring revenue.”


GAAP Results

 

Q3 FY 2021

Q3 FY 2020

Vs. Q3 FY 2020

Revenue

$

12.8 billion

$

  12.0 billion

7%

Net Income

$

2.9  billion

$

  2.8 billion

3%

Diluted Earnings per Share (EPS)

$

0.68

 

$

  0.65

 

5%

 

Non-GAAP Results

 

Q3 FY 2021

Q3 FY 2020

Vs. Q3 FY 2020

Net Income

$

3.5 billion

$

  3.4  billion

4%

EPS

$

0.83

 

$

  0.79

 

5%


Total revenue was up 7% at $12.8 billion, with product revenue up 6% and service revenue up 8%. Revenue by geographic segment was: Americas up 2%, EMEA up 11%, and APJC up 19%. Product revenue performance was broad-based with growth in security, up 13%, infrastructure platforms up 6%, and applications up 5%.

On a GAAP basis, total gross margin, product gross margin, and service gross margin were 63.9%, 62.6%, and 67.4%, respectively, as compared with 64.9%, 63.7%, and 67.7%, respectively, in the third quarter of fiscal 2020.

On a non-GAAP basis, total gross margin, product gross margin, and service gross margin were 66.0%, 64.9%, and 68.7%, respectively, as compared with 66.6%, 65.8%, and 68.9%, respectively, in the third quarter of fiscal 2020.

Total gross margins by geographic segment were: 66.5% for the Americas, 65.6% for EMEA and 64.7% for APJC.

On a GAAP basis, operating expenses were $4.7 billion, up 8%, and were 36.9% of revenue. Non-GAAP operating expenses were $4.1 billion, up 9%, and were 32.4% of revenue.

GAAP operating income was $3.5 billion, up 1%, with GAAP operating margin of 27.1%. Non-GAAP operating income was $4.3 billion, up 3%, with non-GAAP operating margin at 33.6%. The GAAP tax provision rate was 20.3%. The non-GAAP tax provision rate was 19.0%.

On a GAAP basis, net income was $2.9 billion, an increase of 3%, and EPS was $0.68, an increase of 5%. On a non-GAAP basis, net income was $3.5 billion, an increase of 4%, and EPS was $0.83, an increase of 5%.

Cash flow from operating activities accounted for $3.9 billion for the third quarter of fiscal 2021, a decrease of 8% compared with $4.2 billion for the third quarter of fiscal 2020.

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