Q4FY13 Earnings Slides
Q4FY13 Earnings Slides
Q4FY13 Earnings Slides
FORWARD-LOOKING STATEMENTS
This presentation contains projections and other forward-looking statements regarding future events or the future financial performance of Cisco, including future operating results. These projections and statements are only predictions. Actual events or results may differ materially from those in the projections or other forward-looking statements. Please see Ciscos filings with the SEC, including its most recent filings on Form 10-K and 10-Q, for a discussion of important risk factors that could cause actual events or results to differ materially from those in the projections or other forward-looking statements.
GAAP RECONCILIATION
During this presentation references to financial measures of Cisco will include references to non-GAAP financial measures. Cisco provides a reconciliation between GAAP and non-GAAP financial information on our website at www.cisco.com under About Cisco in the Investor Relations section. http://investor.cisco.com/financialstatements.cfm
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Opening Remarks Financial Overview Business Momentum & Key Trends Guidance Summary and Q&A
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Q4 FY13 Takeaways
Drove both top line growth and bottom line non-GAAP EPS growth, with
stable gross margins for the year and strong operating margins
squarely at the center of cloud, mobility, BYOD, security and the Internet of Everythinguniquely positioned to help our customers meet their business goals
Delivered strong performance in what continues to be a challenging
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Opening Remarks Financial Overview Business Momentum & Key Trends Guidance Summary and Q&A
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FY12 $46,061 7% 36,326 9,735 62.4% 61.2% 67.2% 16,027 34.8% 27.7% $10,017 11% $1.85 14%
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FY13 $48,607 6% 38,029 10,578 62.5% 61.3% 67.0% 16,718 34.4% 28.1% $10,866 8% $2.02 9%
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Revenue Year/Year Growth Product Service Gross Margin Product Gross Margin Service Gross Margin Operating Expenses OPEX (% of Revenue) Operating Income (% of Revenue) Net Income Year/Year Growth EPS (diluted) Year/Year Growth
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FY12 $46,061 36,326 9,735 61.2% 60.1% 65.6% 18,144 39.4% 21.9% $8,041 $1.49
FY13 $48,607 38,029 10,578 60.6% 59.1% 65.7% 18,244 37.5% 23.0% $9,983 $1.86
Revenue Product Service Gross Margin Product Gross Margin Service Gross Margin Operating Expenses OPEX (% of Revenue) Operating Income (% of Revenue) Net Income EPS (diluted)
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Percentage Q4 FY13 $7,353 3,145 1,919 $12,417 Q4 FY12 62.7% 61.6% 59.6% 61.9% Q3 FY13 62.6% 65.3% 61.1% 63.0% Q4 FY13 61.8% 64.4% 59.5% 62.1%
Historical product revenue is available on our website at http://investor.cisco.com under Financial Reporting in the Investor Relations section.
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Q4 FY12 $11,690 4% 9,150 2,540 61.9% 60.4% 67.1% 4,022 34.4% 27.5% $2,527 15% $0.47 18%
Q3 FY13 $12,216 5% 9,559 2,657 63.0% 62.1% 66.5% 4,251 34.8% 28.2% $2,728 5% $0.51 6%
Q4 FY13 $12,417 6% 9,736 2,681 62.1% 60.8% 67.1% 4,210 33.9% 28.2% $2,847 13% $0.52 11%
Revenue Year/Year Growth Product Service Gross Margin Product Gross Margin Service Gross Margin Operating Expenses OPEX (% of Revenue) Operating Income (% of Revenue) Net Income Year/Year Growth EPS (diluted) Year/Year Growth
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Q4 FY12 $11,690 9,150 2,540 60.6% 59.2% 65.5% 4,714 40.3% 20.3% $1,917 $0.36
Q3 FY13 $12,216 9,559 2,657 61.5% 60.4% 65.3% 4,569 37.4% 24.1% $2,478 $0.46
Q4 FY13 $12,417 9,736 2,681 59.2% 57.3% 65.8% 4,533 36.5% 22.7% $2,270 $0.42
Revenue Product Service Gross Margin Product Gross Margin Service Gross Margin Operating Expenses OPEX (% of Revenue) Operating Income (% of Revenue) Net Income EPS (diluted)
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GAAP Operating Income Share-based compensation expense Amortization of acquisition-related intangible assets TiVo patent litigation settlement Other acquisition-related/divestiture costs Total non-GAAP adjustments Non-GAAP Operating Income % of Revenue
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Capital Allocation
Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 FY13
$0.14
$0.14
$0.17
Number of Shares (M)
$0.17
$0.62
$1,160 $2,773
47 128
$24.80 $21.63
* Approximately $3.1B remaining authorized funds in repurchase program as of the end of Q4 FY13.
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Opening Remarks Financial Overview Business Momentum & Key Trends Guidance Summary and Q&A
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Revenue % of Total
22% 31% 1% 3% 5% 5% 8% 9% 17% Switching NGN Routing SP Video Collaboration Wireless Data Center Security Other Service
Switching NGN Routing Service Provider Video Collaboration Wireless Data Center Security Other Products Service Total Cisco
$3,803 2,092 1,185 978 637 593 346 102 2,681 $12,417
0% (56%) 6% 6%
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Customer Segment Enterprise Public Sector Commercial* Service Provider Total Cisco
Y/Y Growth %
5% 6% (3%) 4%
(2%) 6% 5% 6% 4%
Comfortably above 1
Opening Remarks Financial Overview Business Momentum & Key Trends Guidance Summary and Q&A
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Forward-Looking Statements
These presentation slides and the related conference call 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 be the #1 IT company; the desire of our customers and partners for Ciscos help to successfully navigate the inconsistent global landscape; the benefits to our customers of our leadership in their product categories and our ability to bring technologies and solutions together in an architecture to lower operating costs and accomplish other business objectives; our financial strategy and our ability to continue profitable growth to maximize shareholder value for the long term; and the expectation that the Internet of Everything (IoE) will enable global private-sector businesses to generate profits) and the future financial performance of Cisco 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: 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, including our foundational priorities, and in certain geographical locations; the timing of orders and manufacturing and customer lead times; 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; 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, intellectual property, antitrust, shareholder and other matters, and governmental investigations; natural catastrophic events; a 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 Ciscos most recent reports on Forms 10-Q and 10-K filed on May 21, 2013 and September 12, 2012, respectively. The financial information contained in these presentation slides and the related conference call should be read in conjunction with the consolidated financial statements and notes thereto included in Ciscos most recent reports on Forms 10-Q and 10-K, as each may be amended from time to time. Ciscos results of operations for the three and twelve months ended July 27, 2013 are not necessarily indicative of Ciscos operating results for any future periods. Any projections in these presentation slides and the related conference call 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 these presentation slides and the related conference call.
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