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Form 8-K CISCO SYSTEMS, INC. For: Aug 17

August 17, 2022 4:13 PM EDT

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 17, 2022

 

 

CISCO SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-39940   77-0059951

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

170 West Tasman Drive, San Jose, California   95134-1706
(Address of principal executive offices)   (Zip Code)

(408) 526-4000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report.)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock, par value $0.001 per share   CSCO   The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 


Item 2.02.

Results of Operations and Financial Condition.

On August 17, 2022, Cisco Systems, Inc. (“Cisco”) reported its results of operations for its fiscal fourth quarter and fiscal year 2022 ended July 30, 2022. A copy of the press release issued by Cisco concerning the foregoing results is furnished herewith as Exhibit 99.1.

The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing of Cisco, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference to such filing. The information in this report, including the exhibit hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.

The attached exhibit includes non-GAAP net income, non-GAAP gross margins, non-GAAP operating expenses, non-GAAP operating income and margin, non-GAAP effective tax rates, non-GAAP interest and other income (loss), net, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non-GAAP basis.

These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco’s results of operations in conjunction with the corresponding GAAP measures.

Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations.

For its internal budgeting process, Cisco’s management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition-related/divestiture costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies (such as legal and indemnification settlements and the supplier component remediation amounts), Russia-Ukraine war costs, gains and losses on equity investments, the income tax effects of the foregoing, and significant tax matters. Cisco’s management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Cisco. In prior periods, Cisco has excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. From time to time in the future, there may be other items that Cisco may exclude for purposes of its internal budgeting process and in reviewing its financial results.


As described above, Cisco excludes the following items from one or more of its non-GAAP measures when applicable:

Share-based compensation expense. These expenses consist primarily of expenses for employee restricted stock and restricted stock units, employee stock options, and employee stock purchase rights, including such expenses associated with acquisitions. Cisco excludes share-based compensation expense from its non-GAAP measures primarily because they are non-cash expenses and Cisco believes that it is useful to investors to understand the impact of share-based compensation to its results of operations.

Amortization of acquisition-related intangible assets. Cisco incurs amortization of intangible assets (which may include impairment charges from the write-downs of purchased intangible assets) in connection with acquisitions. Such intangible assets may include purchased intangible assets with finite lives, capitalized in process research and development and goodwill. Cisco excludes these items because Cisco does not believe these expenses are reflective of ongoing operating results in the period incurred. These amounts arise from Cisco’s prior acquisitions and have no direct correlation to the operation of Cisco’s business.

Acquisition-related/divestiture costs. In connection with its business combinations, Cisco incurs compensation expense, changes to the fair value of contingent consideration, as well as professional fees and other direct expenses such as restructuring activities related to the acquired company. In addition, from time to time Cisco enters into foreign currency transactions related to pending acquisitions, and may incur gains or losses on such transactions. Cisco may also from time to time incur gains or losses from divestitures of a business area as well as professional fees and other direct expenses associated with such transactions. Cisco excludes such compensation expense, changes to the fair value of contingent consideration, fees, other direct expenses, and gains and losses, as they are related to acquisitions and divestitures and have no direct correlation to the operation of Cisco’s business.

Significant asset impairments and restructurings. Cisco from time to time incurs significant asset impairments, restructuring charges, and gains or losses on asset disposals. Cisco excludes these items, when significant, because it does not believe they are reflective of ongoing business and operating results.

Significant litigation settlements and other contingencies. Cisco from time to time may incur charges or benefits related to significant litigation settlements and other contingencies. Cisco excludes these charges or benefits, when significant, because it does not believe they are reflective of ongoing business and operating results.

Russia-Ukraine War Costs. In March 2022, in connection with the Russian invasion of Ukraine, Cisco announced its intention to stop business operations in Russia and Belarus for the foreseeable future. Further, on June 23, 2022, Cisco announced that it will begin an orderly wind-down and exit of its business in Russia and Belarus. Cisco has and may incur certain non-recurring charges related to these events. These charges include non-recoverability of certain assets, special personnel-related charges in order to support impacted employees, potential future litigation and other contingencies, and severance and other exit related costs, among others. Cisco excludes these charges because it believes they are not normal and recurring with respect to ongoing business and operating results. These excluded amounts do not include any impacts to revenue.

Gains and losses on equity investments. Cisco excludes gains and losses on equity investments because it does not believe they are reflective of ongoing business and operating results.

Income tax effects of the foregoing. This amount is used to present each of the amounts described above on an after-tax basis consistent with the presentation of non-GAAP net income.

Significant tax matters. Cisco may incur tax charges or benefits that are (i) related to prior periods or (ii) not reflective of its ongoing provision for income taxes. These tax charges or benefits may be the result of events such as changes in tax legislation, court decisions, and/or tax settlements. Cisco excludes these charges or benefits, when significant, because it does not believe they are reflective of ongoing business and operating results.

From time to time in the future, there may be other items that Cisco may exclude if it believes that doing so is consistent with the goal of providing useful information to investors and management.

Cisco will incur share-based compensation expense, amortization of acquisition-related intangible assets, acquisition-related costs, and gains and losses on equity investments, in future periods. Significant asset impairments, restructurings, significant litigation settlements and other contingencies, Russia-Ukraine war costs, and divestiture costs could occur in future periods. Cisco could also be impacted by significant tax matters in future periods.


Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit Number

  

Description of Document

99.1    Press Release of Cisco, dated August 17, 2022, reporting the results of operations for Cisco’s fiscal fourth quarter and fiscal year 2022 ended July 30, 2022.
104    Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

      CISCO SYSTEMS, INC.
Dated: August 17, 2022     By:  

/s/ R. Scott Herren

    Name:   R. Scott Herren
    Title:   Executive Vice President and Chief Financial Officer

Exhibit 99.1

 

LOGO

 

Press Contact:

  

Investor Relations Contact:

Robyn Blum

  

Marilyn Mora

Cisco

  

Cisco

1 (408) 930-8548

  

1 (408) 527-7452

[email protected]

  

[email protected]

CISCO REPORTS FOURTH QUARTER AND FISCAL YEAR 2022 EARNINGS

News Summary:

 

   

Cisco ended fiscal 2022 with Q4 revenue at $13.1 billion, flat year over year and fiscal year revenue of $51.6 billion, up 3% year over year

 

   

Strong demand with record full year product orders and backlog

 

   

Progress on business model transformation with total Annualized Recurring Revenue (ARR) at $22.9 billion in the fourth quarter of fiscal 2022, up 8% year over year

 

 

Q4 FY 2022 Results:

 

   

Revenue: $13.1 billion

 

   

Flat year over year

 

   

Earnings per Share: GAAP: $0.68; Non-GAAP: $0.83

 

   

GAAP EPS decreased (4)% year over year

 

   

Non-GAAP EPS decreased (1)% year over year

 

 

FY 2022 Results:

 

   

Revenue: $51.6 billion

 

   

Increase of 3% year over year

 

   

Earnings per Share: GAAP: $2.82; Non-GAAP: $3.36

 

   

GAAP EPS increased 13% year over year

 

   

Non-GAAP EPS increased 4% year over year

 

 

Q1 FY 2023 Guidance:

 

   

Revenue: 2% to 4% growth year over year

 

   

Earnings per Share: GAAP: $0.64 to $0.68; Non-GAAP: $0.82 to $0.84

 

 

FY 2023 Guidance:

 

   

Revenue: 4% to 6% growth year over year

 

   

Earnings per Share: GAAP: $2.77 to $2.88; Non-GAAP: $3.49 to $3.56

SAN JOSE, Calif. — August 17, 2022 — Cisco today reported fourth quarter and fiscal year results for the period ended July 30, 2022. Cisco reported fourth quarter revenue of $13.1 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.8 billion or $0.68 per share, and non-GAAP net income of $3.4 billion or $0.83 per share.

“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.”

 

1


Q4 GAAP Results

 

     Q4 FY 2022      Q4 FY 2021      Vs. Q4 FY 2021  

Revenue

   $ 13.1 billion      $ 13.1 billion        —  

Net Income

   $ 2.8 billion      $ 3.0 billion        (6 )% 

Diluted Earnings per Share (EPS)

   $ 0.68      $ 0.71        (4 )% 

Q4 Non-GAAP Results

 

     Q4 FY 2022      Q4 FY 2021      Vs. Q4 FY 2021  

Net Income

   $ 3.4 billion      $ 3.6 billion        (3 )% 

EPS

   $ 0.83      $ 0.84        (1 )% 

Fiscal Year GAAP Results

 

     FY 2022      FY 2021      Vs. FY 2021  

Revenue

   $ 51.6 billion      $ 49.8 billion        3

Net Income

   $ 11.8 billion      $ 10.6 billion        12

EPS

   $ 2.82      $ 2.50        13

Fiscal Year Non-GAAP Results

 

     FY 2022      FY 2021      Vs. FY 2021  

Net Income

   $ 14.1 billion      $ 13.6 billion        3

EPS

   $ 3.36      $ 3.22        4

Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP basis are provided in the tables located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

 

2


Financial Summary

All comparative percentages are on a year-over-year basis unless otherwise noted.

Q4 FY 2022 Highlights

Revenue — Total revenue was flat at $13.1 billion, with both product revenue and service revenue flat year over year. Revenue by geographic segment was: Americas down 3%, EMEA up 8%, and APJC 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 — On a GAAP basis, total gross margin, product gross margin, and service gross margin were 61.3%, 59.1%, and 67.5%, respectively, as compared with 63.6%, 62.7%, and 66.2%, respectively, in the fourth quarter of fiscal 2021.

On a non-GAAP basis, total gross margin, product gross margin, and service gross margin were 63.3%, 61.3%, and 69.0%, respectively, as compared with 65.6%, 65.0%, and 67.4%, respectively, in the fourth quarter of fiscal 2021.

Total gross margins by geographic segment were: 62.6% for the Americas, 64.4% for EMEA and 63.6% for APJC.

Operating Expenses — On a GAAP basis, operating expenses were $4.6 billion, down 4%, and were 35.0% of revenue. Non-GAAP operating expenses were $4.1 billion, down 4%, and were 30.9% of revenue.

Operating Income — GAAP operating income was $3.4 billion, down 4%, with GAAP operating margin of 26.2%. Non-GAAP operating income was $4.2 billion, down 4%, with non-GAAP operating margin at 32.4%.

Provision for Income Taxes — The GAAP tax provision rate was 17.6%. The non-GAAP tax provision rate was 18.5%.

Net Income and EPS — On a GAAP basis, net income was $2.8 billion, a decrease of 6%, and EPS was $0.68, a decrease of 4%. On a non-GAAP basis, net income was $3.4 billion, a decrease of 3%, and EPS was $0.83, a decrease of 1%.

Cash Flow from Operating Activities — $3.7 billion for the fourth quarter of fiscal 2022, a decrease of 18% compared with $4.5 billion for the fourth quarter of fiscal 2021.

FY 2022 Highlights

Revenue — Total revenue was $51.6 billion, an increase of 3%.

Net Income and EPS — On a GAAP basis, net income was $11.8 billion, an increase of 12%, and EPS was $2.82, an increase of 13%. On a non-GAAP basis, net income was $14.1 billion, an increase of 3% compared to fiscal 2021, and EPS was $3.36, an increase of 4%.

Cash Flow from Operating Activities — $13.2 billion for fiscal 2022, a decrease of 14% compared with fiscal 2021.

Balance Sheet and Other Financial Highlights

Cash and Cash Equivalents and Investments — $19.3 billion at the end of the fourth quarter of fiscal 2022, compared with $20.1 billion at the end of the third quarter of fiscal 2022, and compared with $24.5 billion at the end of fiscal 2021.

Remaining Performance Obligations (RPO) $31.5 billion, up 2% in total, with 54% of this amount to be recognized as revenue over the next 12 months. Product RPO were up 6% and service RPO were down 1%.

Deferred Revenue — $23.3 billion, up 5% in total, with deferred product revenue up 11%. Deferred service revenue was up 1%.

Capital Allocation — In the fourth quarter of fiscal 2022, we returned $4.0 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.38 per common share, or $1.6 billion, and repurchased approximately 54 million shares of common stock under our stock repurchase program at an average price of $44.02 per share for an aggregate purchase price of $2.4 billion. The remaining authorized amount for stock repurchases under the program is $15.2 billion with no termination date.

 

3


Guidance

Cisco expects to achieve the following results for the first quarter of fiscal 2023:

 

Q1 FY 2023

    

Revenue

   2% - 4% growth Y/Y

Non-GAAP gross margin rate

   63% - 64%

Non-GAAP operating margin rate

   31.5% - 32.5%

Non-GAAP EPS

   $0.82 - $0.84

Cisco estimates that GAAP EPS will be $0.64 to $0.68 for the first quarter of fiscal 2023.

Cisco expects to achieve the following results for fiscal 2023:

 

FY 2023

    

Revenue

   4% - 6% growth Y/Y

Non-GAAP EPS

   $3.49 - $3.56

Cisco estimates that GAAP EPS will be $2.77 to $2.88 for fiscal 2023.

Our Q1 FY 2023 and FY 2023 guidance assumes an effective tax provision rate of 19% for GAAP and non-GAAP results.

A reconciliation between the Guidance on a GAAP and non-GAAP basis is provided in the tables entitled “GAAP to non-GAAP Guidance” located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

Editor’s Notes:

 

   

Q4 fiscal year 2022 conference call to discuss Cisco’s results along with its guidance will be held on Wednesday, August 17, 2022 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international).

 

   

Conference call replay will be available from 4:00 p.m. Pacific Time, August 17, 2022 to 4:00 p.m. Pacific Time, August 24, 2022 at 1-866-517-3736 (United States) or 1-203-369-2047 (international). The replay will also be available via webcast on the Cisco Investor Relations website at https://investor.cisco.com.

 

   

Additional information regarding Cisco’s financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, August 17, 2022. Text of the conference call’s prepared remarks will be available within 24 hours of completion of the call. The webcast will include both the prepared remarks and the question-and-answer session. This information, along with the GAAP to non-GAAP reconciliation information, will be available on the Cisco Investor Relations website at https://investor.cisco.com.

 

4


CISCO SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per-share amounts)

(Unaudited)

 

     Three Months Ended     Fiscal Year Ended  
     July 30,
2022
    July 31,
2021
    July 30,
2022
    July 31,
2021
 

REVENUE:

        

Product

   $ 9,688     $ 9,716     $ 38,018     $ 36,014  

Service

     3,414       3,410       13,539       13,804  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     13,102       13,126       51,557       49,818  
  

 

 

   

 

 

   

 

 

   

 

 

 

COST OF SALES:

        

Product

     3,966       3,628       14,814       13,300  

Service

     1,111       1,154       4,495       4,624  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of sales

     5,077       4,782       19,309       17,924  
  

 

 

   

 

 

   

 

 

   

 

 

 

GROSS MARGIN

     8,025       8,344       32,248       31,894  

OPERATING EXPENSES:

        

Research and development

     1,682       1,713       6,774       6,549  

Sales and marketing

     2,349       2,448       9,085       9,259  

General and administrative

     489       521       2,101       2,152  

Amortization of purchased intangible assets

     73       79       313       215  

Restructuring and other charges

     (2     8       6       886  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     4,591       4,769       18,279       19,061  
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING INCOME

     3,434       3,575       13,969       12,833  

Interest income

     129       130       476       618  

Interest expense

     (93     (98     (360     (434

Other income (loss), net

     (54     128       392       245  
  

 

 

   

 

 

   

 

 

   

 

 

 

Interest and other income (loss), net

     (18     160       508       429  
  

 

 

   

 

 

   

 

 

   

 

 

 

INCOME BEFORE PROVISION FOR INCOME TAXES

     3,416       3,735       14,477       13,262  

Provision for income taxes

     601       726       2,665       2,671  
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME

   $ 2,815     $ 3,009     $ 11,812     $ 10,591  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share:

        

Basic

   $ 0.68     $ 0.71     $ 2.83     $ 2.51  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.68     $ 0.71     $ 2.82     $ 2.50  
  

 

 

   

 

 

   

 

 

   

 

 

 

Shares used in per-share calculation:

        

Basic

     4,128       4,216       4,170       4,222  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     4,137       4,238       4,192       4,236  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

5


CISCO SYSTEMS, INC.

REVENUE BY SEGMENT

(In millions, except percentages)

 

     July 30, 2022  
     Three Months Ended     Fiscal Year Ended  
     Amount      Y/Y%     Amount      Y/Y%  

Revenue:

          

Americas

   $ 7,470        (3 )%    $ 29,814        2

EMEA

     3,577        8     13,715        6

APJC

     2,055        (2 )%      8,027        4
  

 

 

      

 

 

    

Total

   $ 13,102        —     $ 51,557        3
  

 

 

      

 

 

    

Amounts may not sum and percentages may not recalculate due to rounding.

CISCO SYSTEMS, INC.

GROSS MARGIN PERCENTAGE BY SEGMENT

(In percentages)

 

     July 30, 2022  
     Three Months Ended     Fiscal Year Ended  

Gross Margin Percentage:

    

Americas

     62.6%       64.1%  

EMEA

     64.4%       65.4%  

APJC

     63.6%       65.3%  

CISCO SYSTEMS, INC.

REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES

(In millions, except percentages)

 

     July 30, 2022  
     Three Months Ended     Fiscal Year Ended  
     Amount      Y/Y%     Amount      Y/Y%  

Revenue:

          

Secure, Agile Networks

   $ 6,094        (1 )%    $ 23,829        5

Internet for the Future

     1,257        (10 )%      5,278        17

Collaboration

     1,164        2     4,472        (5 )% 

End-to-End Security

     984        20     3,699        9

Optimized Application Experiences

     185        8     729        11

Other Products

     3        (22 )%      11        (29 )% 
  

 

 

      

 

 

    

Total Product

     9,688        —       38,018        6

Services

     3,414        —       13,539        (2 )% 
  

 

 

      

 

 

    

Total

   $ 13,102        —     $ 51,557        3
  

 

 

      

 

 

    

Amounts may not sum and percentages may not recalculate due to rounding.

 

6


CISCO SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

 

     July 30,
2022
     July 31,
2021
 

ASSETS

     

Current assets:

     

Cash and cash equivalents

   $ 7,079      $ 9,175  

Investments

     12,188        15,343  

Accounts receivable, net of allowance of $83 at July 30, 2022 and $109 at July 31, 2021

     6,622        5,766  

Inventories

     2,568        1,559  

Financing receivables, net

     3,905        4,380  

Other current assets

     4,355        2,889  
  

 

 

    

 

 

 

Total current assets

     36,717        39,112  

Property and equipment, net

     1,997        2,338  

Financing receivables, net

     4,009        4,884  

Goodwill

     38,304        38,168  

Purchased intangible assets, net

     2,569        3,619  

Deferred tax assets

     4,449        4,360  

Other assets

     5,957        5,016  
  

 

 

    

 

 

 

TOTAL ASSETS

   $ 94,002      $ 97,497  
  

 

 

    

 

 

 

LIABILITIES AND EQUITY

     

Current liabilities:

     

Short-term debt

   $ 1,099      $ 2,508  

Accounts payable

     2,281        2,362  

Income taxes payable

     961        801  

Accrued compensation

     3,316        3,818  

Deferred revenue

     12,784        12,148  

Other current liabilities

     5,199        4,620  
  

 

 

    

 

 

 

Total current liabilities

     25,640        26,257  

Long-term debt

     8,416        9,018  

Income taxes payable

     7,725        8,538  

Deferred revenue

     10,480        10,016  

Other long-term liabilities

     1,968        2,393  
  

 

 

    

 

 

 

Total liabilities

     54,229        56,222  
  

 

 

    

 

 

 

Total equity

     39,773        41,275  
  

 

 

    

 

 

 

TOTAL LIABILITIES AND EQUITY

   $ 94,002      $ 97,497  
  

 

 

    

 

 

 

 

7


CISCO SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

 

     Fiscal Year Ended  
     July 30,
2022
    July 31,
2021
 

Cash flows from operating activities:

    

Net income

   $ 11,812     $ 10,591  

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation, amortization, and other

     1,957       1,862  

Share-based compensation expense

     1,886       1,761  

Provision (benefit) for receivables

     55       (6

Deferred income taxes

     (309     (384

(Gains) losses on divestitures, investments and other, net

     (453     (354

Change in operating assets and liabilities, net of effects of acquisitions and divestitures:

    

Accounts receivable

     (1,009     (107

Inventories

     (1,030     (244

Financing receivables

     1,241       1,577  

Other assets

     (1,615     (797

Accounts payable

     (55     (53

Income taxes, net

     (690     (549

Accrued compensation

     (427     643  

Deferred revenue

     1,328       1,560  

Other liabilities

     535       (46
  

 

 

   

 

 

 

Net cash provided by operating activities

     13,226       15,454  
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Purchases of investments

     (6,070     (9,328

Proceeds from sales of investments

     2,660       3,373  

Proceeds from maturities of investments

     5,686       8,409  

Acquisitions, net of cash and cash equivalents acquired and divestitures

     (373     (7,038

Purchases of investments in privately held companies

     (186     (175

Return of investments in privately held companies

     237       194  

Acquisition of property and equipment

     (477     (692

Proceeds from sales of property and equipment

     91       28  

Other

     (15     (56
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     1,553       (5,285
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Issuances of common stock

     660       643  

Repurchases of common stock - repurchase program

     (7,689     (2,877

Shares repurchased for tax withholdings on vesting of restricted stock units

     (692     (636

Short-term borrowings, original maturities of 90 days or less, net

     606       (5

Issuances of debt

     1,049       —    

Repayments of debt

     (3,550     (3,000

Dividends paid

     (6,224     (6,163

Other

     (302     (1
  

 

 

   

 

 

 

Net cash used in financing activities

     (16,142     (12,039
  

 

 

   

 

 

 

Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents

     (1,363     (1,870

Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of fiscal year

     9,942       11,812  
  

 

 

   

 

 

 

Cash, cash equivalents, restricted cash and restricted cash equivalents, end of fiscal year

   $ 8,579     $ 9,942  
  

 

 

   

 

 

 

Supplemental cash flow information:

    

Cash paid for interest

   $ 355     $ 438  

Cash paid for income taxes, net

   $ 3,663     $ 3,604  

 

8


CISCO SYSTEMS, INC.

REMAINING PERFORMANCE OBLIGATIONS

(In millions, except percentages)

 

     July 30, 2022     April 30, 2022     July 31, 2021  
     Amount      Y/Y%     Amount      Y/Y%     Amount      Y/Y%  

Product

   $ 14,090        6   $ 13,416        13   $ 13,270        18

Service

     17,449        (1 )%      16,789        3     17,623        3
  

 

 

      

 

 

      

 

 

    

Total

   $ 31,539        2   $ 30,205        7   $ 30,893        9
  

 

 

      

 

 

      

 

 

    

We expect 54% of total RPO at July 30, 2022 will be recognized as revenue over the next 12 months.

CISCO SYSTEMS, INC.

DEFERRED REVENUE

(In millions)

 

     July 30,
2022
     April 30,
2022
     July 31,
2021
 

Deferred revenue:

        

Product

   $ 10,427      $ 9,835      $ 9,416  

Service

     12,837        12,458        12,748  
  

 

 

    

 

 

    

 

 

 

Total

   $ 23,264      $ 22,293      $ 22,164  
  

 

 

    

 

 

    

 

 

 

Reported as:

        

Current

   $ 12,784      $ 12,249      $ 12,148  

Noncurrent

     10,480        10,044        10,016  
  

 

 

    

 

 

    

 

 

 

Total

   $ 23,264      $ 22,293      $ 22,164  
  

 

 

    

 

 

    

 

 

 

CISCO SYSTEMS, INC.

DIVIDENDS PAID AND REPURCHASES OF COMMON STOCK

(In millions, except per-share amounts)

 

     DIVIDENDS      STOCK REPURCHASE PROGRAM      TOTAL  

Quarter Ended

   Per Share      Amount      Shares      Weighted-
Average Price
per Share
     Amount      Amount  

Fiscal 2022

                 

July 30, 2022

   $ 0.38      $ 1,567        54      $ 44.02      $ 2,402      $ 3,969  

April 30, 2022

   $ 0.38      $ 1,555        5      $ 54.20      $ 252      $ 1,807  

January 29, 2022

   $ 0.37      $ 1,541        82      $ 58.36      $ 4,824      $ 6,365  

October 30, 2021

   $ 0.37      $ 1,561        5      $ 56.49      $ 256      $ 1,817  

Fiscal 2021

                 

July 31, 2021

   $ 0.37      $ 1,562        15      $ 53.30      $ 791      $ 2,353  

May 1, 2021

   $ 0.37      $ 1,560        10      $ 48.71      $ 510      $ 2,070  

January 23, 2021

   $ 0.36      $ 1,521        19      $ 42.82      $ 801      $ 2,322  

October 24, 2020

   $ 0.36      $ 1,520        20      $ 40.44      $ 800      $ 2,320  

 

9


CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GAAP TO NON-GAAP NET INCOME

(In millions)

 

     Three Months Ended     Fiscal Year Ended  
     July 30,
2022
    July 31,
2021
    July 30,
2022
    July 31,
2021
 

GAAP net income

   $ 2,815     $ 3,009     $ 11,812     $ 10,591  

Adjustments to cost of sales:

        

Share-based compensation expense

     78       67       311       275  

Amortization of acquisition-related intangible assets

     162       199       733       698  

Acquisition-related/divestiture costs

     24       1       27       4  

Russia-Ukraine war costs

     2       —         7       —    

Legal and indemnification settlements/charges

     —         —         —         43  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total adjustments to GAAP cost of sales

     266       267       1,078       1,020  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjustments to operating expenses:

        

Share-based compensation expense

     401       357       1,574       1,460  

Amortization of acquisition-related intangible assets

     73       79       328       215  

Acquisition-related/divestiture costs

     45       109       306       288  

Russia-Ukraine war costs

     22       —         84       —    

Significant asset impairments and restructurings

     (2     8       6       886  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total adjustments to GAAP operating expenses

     539       553       2,298       2,849  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjustments to interest and other income (loss), net:

        

Acquisition-related/divestiture costs

     —         —         —         4  

(Gains) and losses on equity investments

     —         (154     (478     (285
  

 

 

   

 

 

   

 

 

   

 

 

 

Total adjustments to GAAP interest and other income (loss), net

     —         (154     (478     (281
  

 

 

   

 

 

   

 

 

   

 

 

 

Total adjustments to GAAP income before provision for income taxes

     805       666       2,898       3,588  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income tax effect of non-GAAP adjustments

     (181     (199     (616     (702

Significant tax matters

     —         76       —         159  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total adjustments to GAAP provision for income taxes

     (181     (123     (616     (543
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income

   $ 3,439     $ 3,552     $ 14,094     $ 13,636  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

10


CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GAAP TO NON-GAAP EPS

 

     Three Months Ended     Fiscal Year Ended  
     July 30,
2022
    July 31,
2021
    July 30,
2022
    July 31,
2021
 

GAAP EPS

   $ 0.68     $ 0.71     $ 2.82     $ 2.50  

Adjustments to GAAP:

        

Share-based compensation expense

     0.12       0.10       0.45       0.41  

Amortization of acquisition-related intangible assets

     0.06       0.07       0.25       0.22  

Acquisition-related/divestiture costs

     0.02       0.03       0.08       0.07  

Russia-Ukraine war costs

     0.01       —         0.02       —    

Legal and indemnification settlements/charges

     —         —         —         0.01  

Significant asset impairments and restructurings

     —         —         —         0.21  

(Gains) and losses on equity investments

     —         (0.04     (0.11     (0.07

Income tax effect of non-GAAP adjustments

     (0.04     (0.05     (0.15     (0.17

Significant tax matters

     —         0.02       —         0.04  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP EPS

   $ 0.83     $ 0.84     $ 3.36     $ 3.22  
  

 

 

   

 

 

   

 

 

   

 

 

 

Amounts may not sum due to rounding.

 

11


CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET,

AND NET INCOME

(In millions, except percentages)

 

     Three Months Ended  
     July 30, 2022  
     Product
Gross
Margin
    Service
Gross
Margin
    Total
Gross
Margin
    Operating
Expenses
    Y/Y     Operating
Income
    Y/Y     Interest
and
other
income
(loss),
net
    Net
Income
    Y/Y  

GAAP amount

   $ 5,722     $ 2,303     $ 8,025     $ 4,591       (4 )%    $ 3,434       (4 )%    $ (18   $ 2,815       (6 )% 

% of revenue

     59.1     67.5     61.3     35.0       26.2       (0.1 )%      21.5  

Adjustments to GAAP amounts:

 

               

Share-based compensation expense

     28       50       78       401         479         —         479    

Amortization of acquisition-related intangible assets

     162       —         162       73         235         —         235    

Acquisition/divestiture-related costs

     24       —         24       45         69         —         69    

Russia-Ukraine war costs

     —         2       2       22         24         —         24    

Significant asset impairments and restructurings

     —         —         —         (2       (2       —         (2  

(Gains) and losses on equity investments

     —         —         —         —           —           —            

Income tax effect/significant tax matters

     —         —         —         —           —           —         (181  
  

 

 

   

 

 

   

 

 

   

 

 

     

 

 

     

 

 

   

 

 

   

Non-GAAP amount

   $ 5,936     $ 2,355     $ 8,291     $ 4,052       (4 )%    $ 4,239       (4 )%    $ (18   $ 3,439       (3 )% 
  

 

 

   

 

 

   

 

 

   

 

 

     

 

 

     

 

 

   

 

 

   

% of revenue

     61.3     69.0     63.3     30.9       32.4       (0.1 )%      26.2  

 

     Three Months Ended  
     July 31, 2021  
     Product
Gross
Margin
    Service
Gross
Margin
    Total
Gross
Margin
    Operating
Expenses
    Operating
Income
    Interest
and other
income
(loss), net
    Net
Income
 

GAAP amount

   $ 6,088     $ 2,256     $ 8,344     $ 4,769     $ 3,575     $ 160     $ 3,009  

% of revenue

     62.7     66.2     63.6     36.3     27.2     1.2     22.9

Adjustments to GAAP amounts:

              

Share-based compensation expense

     24       43       67       357       424       —         424  

Amortization of acquisition-related intangible assets

     199       —         199       79       278       —         278  

Acquisition/divestiture-related costs

     1       —         1       109       110       —         110  

Significant asset impairments and restructurings

     —         —         —         8       8       —         8  

(Gains) and losses on equity investments

     —         —         —         —         —         (154     (154

Income tax effect/significant tax matters

     —         —         —         —         —         —         (123
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP amount

   $ 6,312     $ 2,299     $ 8,611     $ 4,216     $ 4,395     $ 6     $ 3,552  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of revenue

     65.0     67.4     65.6     32.1     33.5     —       27.1

Amounts may not sum and percentages may not recalculate due to rounding.

 

12


CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET,

AND NET INCOME

(In millions, except percentages)

 

     Fiscal Year Ended  
     July 30, 2022  
     Product
Gross
Margin
    Service
Gross
Margin
    Total
Gross
Margin
    Operating
Expenses
    Y/Y     Operating
Income
    Y/Y     Interest
and
other
income
(loss),
net
    Net
Income
    Y/Y  

GAAP amount

   $ 23,204     $ 9,044     $ 32,248     $ 18,279       (4 )%    $ 13,969       9   $ 508     $ 11,812       12

% of revenue

     61.0     66.8     62.5     35.5       27.1       1.0     22.9  

Adjustments to GAAP amounts:

 

               

Share-based compensation expense

     112       199       311       1,574         1,885         —         1,885    

Amortization of acquisition-related intangible assets

     733       —         733       328         1,061         —         1,061    

Acquisition/divestiture-related costs

     27       —         27       306         333         —         333    

Russia-Ukraine war costs

     4       3       7       84         91         —         91    

Significant asset impairments and restructurings

     —         —         —         6         6         —         6    

(Gains) and losses on equity investments

     —         —         —         —           —           (478     (478  

Income tax effect/significant tax matters

     —         —         —         —           —           —         (616  
  

 

 

   

 

 

   

 

 

   

 

 

     

 

 

     

 

 

   

 

 

   

Non-GAAP amount

   $ 24,080     $ 9,246     $ 33,326     $ 15,981       (1 )%    $ 17,345       4   $ 30     $ 14,094       3
  

 

 

   

 

 

   

 

 

   

 

 

     

 

 

     

 

 

   

 

 

   

% of revenue

     63.3     68.3     64.6     31.0       33.6       0.1     27.3  

 

     Fiscal Year Ended  
     July 31, 2021  
     Product
Gross
Margin
    Service
Gross
Margin
    Total
Gross
Margin
    Operating
Expenses
    Operating
Income
    Interest
and other
income
(loss), net
    Net
Income
 

GAAP amount

   $ 22,714     $ 9,180     $ 31,894     $ 19,061     $ 12,833     $ 429     $ 10,591  

% of revenue

     63.1     66.5     64.0     38.3     25.8     0.9     21.3

Adjustments to GAAP amounts:

              

Share-based compensation expense

     99       176       275       1,460       1,735       —         1,735  

Amortization of acquisition-related intangible assets

     698       —         698       215       913       —         913  

Acquisition/divestiture-related costs

     3       1       4       288       292       4       296  

Legal and indemnification settlements/charges

     43       —         43       —         43       —         43  

Significant asset impairments and restructurings

     —         —         —         886       886       —         886  

(Gains) and losses on equity investments

     —         —         —         —         —         (285     (285

Income tax effect/significant tax matters

     —         —         —         —         —         —         (543
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP amount

   $ 23,557     $ 9,357     $ 32,914     $ 16,212     $ 16,702     $ 148     $ 13,636  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of revenue

     65.4     67.8     66.1     32.5     33.5     0.3     27.4

Amounts may not sum and percentages may not recalculate due to rounding.

 

13


CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

EFFECTIVE TAX RATE

(In percentages)

 

     Three Months Ended     Fiscal Year Ended  
     July 30,
2022
    July 31,
2021
    July 30,
2022
    July 31,
2021
 

GAAP effective tax rate

     17.6     19.4     18.4     20.1

Total adjustments to GAAP provision for income taxes

     0.9     (0.1 )%      0.5     (1.0 )% 
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP effective tax rate

     18.5     19.3     18.9     19.1
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP TO NON-GAAP GUIDANCE

 

Q1 FY 2023

  

Gross Margin
Rate

  

Operating Margin
Rate

  

Earnings per
Share (1)

GAAP

   61% - 62%    25.5% - 26.5%    $0.64 - $0.68

Estimated adjustments for:

        

Share-based compensation expense

   1.0%    4.0%    $0.10 - $0.11

Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs

   1.0%    2.0%    $0.06 - $0.07
  

 

  

 

  

 

Non-GAAP

   63% - 64%    31.5% - 32.5%    $0.82 - $0.84
  

 

  

 

  

 

 

FY 2023

   Earnings per
Share (1)

GAAP

   $2.77 - $2.88

Estimated adjustments for:

  

Share-based compensation expense

   $0.46 - $0.48

Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs

   $0.22 - $0.24
  

 

Non-GAAP

   $3.49 - $3.56
  

 

 

(1) 

Estimated adjustments to GAAP earnings per share are shown after income tax effects.

Except as noted above, this guidance does not include the effects of any future acquisitions/divestitures, asset impairments, Russia-Ukraine war costs, restructurings, (gains) and losses on equity investments and significant tax matters or other events, which may or may not be significant unless specifically stated.

 

14


Forward Looking Statements, Non-GAAP Information and Additional Information

This release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events (such as our ability to execute in an incredibly dynamic environment, the success of numerous initiatives we have taken to reduce the impact of the global supply situation, the success of our strategy and confidence in our long-term growth, the fundamental drivers across our business being strong, strong demand for our innovation and the solutions we bring to our customers as they accelerate their digital transformation resulting in record backlogs, continued progress on our business model transformation shifting to more software and subscriptions, and our commitment to returning excess capital to our shareholders and confidence in our ongoing cash flows) and the future financial performance of Cisco (including the guidance for Q1 FY 2023 and full year FY 2023) that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including: the impact of the COVID-19 pandemic and related public health measures; business and economic conditions and growth trends in the networking industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; overall information technology spending; the growth and evolution of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider market and other customer markets; the return on our investments in certain priorities, key growth areas, and in certain geographical locations, as well as maintaining leadership in Secure, Agile Networks and services; the timing of orders and manufacturing and customer lead times; significant supply constraints; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; variability of component costs; variations in sales channels, product costs or mix of products sold; our ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; our ability to achieve expected benefits of our partnerships; increased competition in our product and service markets, including the data center market; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks; product defects and returns; litigation involving patents, other intellectual property, antitrust, stockholder and other matters, and governmental investigations; our ability to achieve the benefits of restructurings and possible changes in the size and timing of related charges; cyber-attacks, data breaches or malware; vulnerabilities and critical security defects; terrorism; natural catastrophic events (including as a result of global climate change); any other pandemic or epidemic; our ability to achieve the benefits anticipated from our investments in sales, engineering, service, marketing and manufacturing activities; our ability to recruit and retain key personnel; our ability to manage financial risk, and to manage expenses during economic downturns; risks related to the global nature of our operations, including our operations in emerging markets; currency fluctuations and other international factors; changes in provision for income taxes, including changes in tax laws and regulations or adverse outcomes resulting from examinations of our income tax returns; potential volatility in operating results; and other factors listed in Cisco’s most recent reports on Forms 10-Q and 10-K filed on May 25, 2022 and September 9, 2021, respectively. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco’s most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. Cisco’s results of operations for the three months and the year ended July 30, 2022 are not necessarily indicative of Cisco’s operating results for any future periods. Any projections in this release are based on limited information currently available to Cisco, which is subject to change. Although any such projections and the factors influencing them will likely change, Cisco will not necessarily update the information, since Cisco will only provide guidance at certain points during the year. Such information speaks only as of the date of this release.

This release includes non-GAAP net income, non-GAAP gross margins, non-GAAP operating expenses, non-GAAP operating income and margin, non-GAAP effective tax rates, non-GAAP interest and other income (loss), net, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non-GAAP basis.

These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco’s results of operations in conjunction with the corresponding GAAP measures.

Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations.

For its internal budgeting process, Cisco’s management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition-related/divestiture costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies, Russia-Ukraine war costs, gains and losses on equity investments, the income tax effects of the foregoing and significant tax matters.

 

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Cisco’s management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Cisco. In prior periods, Cisco has excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. From time to time in the future there may be other items that Cisco may exclude for purposes of its internal budgeting process and in reviewing its financial results. For additional information on the items excluded by Cisco from one or more of its non-GAAP financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission.

Annualized Recurring Revenue represents the annualized revenue run-rate of active subscriptions, term licenses, and maintenance contracts at the end of a reporting period, net of rebates to customers and partners as well as certain other revenue adjustments. Includes both revenue recognized ratably as well as upfront on an annualized basis.

About Cisco

Cisco (Nasdaq: CSCO) is the worldwide leader in technology that powers the Internet. Cisco inspires new possibilities by reimagining your applications, securing your data, transforming your infrastructure, and empowering your teams for a global and inclusive future. Discover more at newsroom.cisco.com and follow us on Twitter at @Cisco.

Copyright © 2022 Cisco and/or its affiliates. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. To view a list of Cisco trademarks, go to: www.cisco.com/go/trademarks. Third-party trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

RSS Feed for Cisco: https://newsroom.cisco.com/rss-feeds

 

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