Cisco’s Chambers Leaves Parting Gift in Strong Q4 Results
Cisco’s (CSCO) iconic, now former chief executive John Chambers left his 20-year day job on a high note, delivering strong Q4 results that beat analysts’ forecast on revenue and per share earnings.
The networking giant recorded a 4 percent rise in sales from last year to $12.8 billion and non-GAAP EPS of $0.59 for the quarter. Cisco’s $3 billion in net income for the period was up more than 6 percent. Analysts expected the vendor’s Q4 to come in at $12.7 billion in sales and $0.56 a share in earnings.
For the full fiscal year, Cisco posted $49.2 billion in sales, a four percent year-over-year increase, and $2.21 in non-GAAP EPS. Cisco forecasted Q1 2016 sales to tick up 2 to 4 percent and per share earnings to come in at between $0.55 and $.057.
While Cisco technically reported its Q4 results under new chief executive Chuck Robbins’ watch, the vendor’s financial performance for the period occurred under Chambers’ direction, providing the new boss with a strong tailwind in his sails.
In his first turn discussing quarterly results, Robbins paid particular importance to Cisco’s $9.8 billion in deferred revenue for the quarter and $15.2 billion for the full year, increases of 4 percent and 7 percent, respectively, owing to subscription and software sales.
Robbins said Cisco’s growth in deferred revenue reflected its efforts to build a stronger mix of recurring sales.
“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,” he said.
“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,” said Robbins.
Cisco Americas sales rose 7 percent for the period but revenue both in EMEA and APJC were flat. The vendor’s Collaboration and Data Center businesses each increased by 14 percent while its Switching and NGN Routing units grew by 2 percent and 3 percent, respectively.
The company finished the quarter with some $60.4 billion in cash on hand and short-term investments.