Cisco reported net sales of $8.2 billion for its third fiscal quarter ending April 25, down 17% year-over-over but ahead of market expectations. Net income (GAAP) was $1.3 billion or $0.23 per share, and non-GAAP net income of $1.8 billion or $0.30 per share. Cisco generated $2 billion in cash in the third quarter, resulting in total cash and investments of $33.6 billion.
"Cisco delivered solid financial performance despite a challenging global economy and period of evolving market dynamics," said John Chambers, chairman and chief executive officer, Cisco. "These results demonstrate our ability to drive operational excellence and manage profitability across varying economic cycles. We will use this period of market transition to align and optimize resources, make strategic investments, move into market adjacencies and enhance relationships with our customers. As we exit the quarter with a compelling financial position and an innovation engine from both a products and business model perspective, we believe we are well positioned for the eventual economic recovery."
Some highlights from the report:
- In terms of overall customer segments, the public sector was the least impacted across all customer segments markets, but orders were still down 12% overall. For the U.S. public sector, which includes both Federal and State/Local, orders were down in the mid-single digits. Japan and Asia Pacific public sector were both positive at 12% and 20%, order growth respectively.
- By geography, Japan orders were down year-over-year in the third quarter by approximately 20%. For the U.S., orders in the third quarter were down by approximately 22% year-over-year. Asia Pacific orders were down 27% year-over-year. European Markets in total were down approximately 28% year-over-year in the third quarter. And Emerging Markets was down by 31% year-over-year.
- Product book to bill was approximately 1.
- Employee headcount at the end of the quarter was 66,558, down from 67,318 in the preceding quarter.
- During the quarter, Cisco repurchased $1.2 billion of stock.
- The company reduced its travel expenses by 50% compared to the previous quarter.
- Cash flows from operations were $2.0 billion for the third quarter of fiscal 2009, compared with $3.0 billion for the third quarter of fiscal 2008, and compared with $3.2 billion for the second quarter of fiscal 2009.
- Cash and cash equivalents and investments were $33.6 billion at the end of the third quarter of fiscal 2009, compared with $26.2 billion at the end of fiscal 2008, and compared with $29.5 billion at the end of the second quarter of fiscal 2009.
- Deferred revenue was $8.8 billion at the end of the third quarter of fiscal 2009, compared with $8.9 billion at the end of fiscal 2008, and compared with $9.3 billion at the end of the second quarter of fiscal 2009.
