Cisco Systems reported revenue for its third fiscal quarter of $7.3 billion, compared with $6.2 billion for the third quarter of fiscal 2005 and compared with $6.6 billion for the second quarter of fiscal 2006. Recently acquired Scientific-Atlanta contributed $407 million in net sales. Net income (GAAP) basis was $1.4 billion or $0.22 per share, which includes stock-based compensation expense related to employee stock options and employee stock purchases of $188 million, net of tax, or $0.03 per share.
"Cisco's third quarter was marked by record revenues and strong results in orders and earnings per share," said John Chambers, president and CEO, Cisco Systems, Inc. "We saw a number of highlights this quarter, notably the growth of our U.S. and emerging markets, the continued strength of the commercial market segment and advanced technologies, and the balanced performance across most of our key product categories."
Additional highlights include:
- Cash flows from operations were $2.3 billion for the third quarter of fiscal 2006, compared with $1.9 billion for the third quarter of fiscal 2005, and compared with $1.9 billion for the second quarter of fiscal 2006.
- Sales in the U.S. and Canada represented 52% of business, Europe represented 3%, Asia/Pac was 11%, Japan was 4% and Emerging Markets were 10%
- Sales to U.S. enterprises grew approximately 20% y/y.
- Sales to U.S. service providers were up in the high 20s in percentage growth.
- Total non-GAAP gross margin was 65.7%, down approximately 2% due to Scientific-Atlanta
- Cisco has approximately $18.2 billion in cash and investments
- Switching/routing orders grew in the mid-teens y/y
- High-end routing orders grew in the mid-20s with over 50 CRS-1 customers
- Enterprise IP communications orders grew 40%
- Storage orders grew in the low 20s%
- Wireless revenue grew in the low to mid 30s%
- Security revenue grew in the high single digits
- Home networking grew in the high single digits, excluding Scientic-Atlanta
- Optical revenue declined approximately 20%, excluding Scientific-Atlanta
- For its Q4, Cisco anticipates revenue growth in the range of 10-15% y/y.
