Cisco Systems (CSCO) Tops Q4 EPS by 3c, Guides Q1 EPS In-Line

(Updated - August 12, 2015 4:08 PM EDT)

Cisco Systems (NASDAQ: CSCO) reported Q4 EPS of $0.59, $0.03 better than the analyst estimate of $0.56. Revenue for the quarter rose 4% from last year to $12.8 billion versus the consensus estimate of $12.65 billion.

Cisco Systems sees Q1 EPS of $0.55-$0.57 vs the consensus of $0.56.

"I'm stepping into the CEO role at an incredibly exciting time for Cisco. 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," said Chuck Robbins, Cisco chief executive officer.

"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. The network's strategic role at the center of everything becoming digital -- today and in the future -- is why I strongly believe Cisco's best years are ahead of us."

Business Outlook for the First Quarter of Fiscal Year 2016

Cisco expects to achieve the following results for the first quarter of fiscal year 2016:

Q1 2016

------------------------------------------------------- --------------------

Revenue                                                  2% - 4% growth Y/Y

Non-GAAP gross margin rate                               61% - 62%

Non-GAAP operating margin rate                           28% - 29%

Non-GAAP tax provision rate                              23%

Non-GAAP EPS                                            $0.55 - $0.57

Cisco estimates that GAAP EPS will be lower than non-GAAP EPS by $0.11 to $0.15 cents per share in the first quarter of fiscal 2016 as follows:

Q1 2016

------------------------------------------------------------ ---------------

Share-based compensation expense                             $0.05 - $0.06

Amortization of purchased intangible assets and other

 acquisition-related/divestiture costs                        0.04 - 0.06

                                                             ---------------

  Subtotal                                                    0.09 - 0.12

Restructuring and other charges                               0.02 - 0.03

                                                             ---------------

  Total                                                      $0.11 - $0.15

                                                             ===============

For earnings history and earnings-related data on Cisco Systems (CSCO) click here.

You May Also Be Interested In

• SAP Q1 results fall short of Wall Street estimates as transformation kicks off
• Independent Bank Group (IBTX) Tops Q1 EPS by 4c
• HealthStream (HSTM) Tops Q1 EPS by 6c, provides guidance