Cisco reported financial results for its third quarter ended April 29, 2017, as follows:
1. Revenue for the third quarter of fiscal 2017 of $11.94 billion, up 3.1% compared with $11.58 billion in the second quarter and down 0.5% from $12.00 billion in the third quarter of 2016.
2. Gross profit for the third quarter of $7.52 billion, up 3.3% compared with $7.28 billion in the second quarter and down 2.6% from $7.72 billion in the third quarter of 2016.
3. R&D expenditure for the third quarter of $1.51 billion, flat compared with $1.51 billion in the second quarter and down 7.4% versus $1.63 billion in the third quarter of 2016.
4. SG&A expenditure for the third quarter of $2.71 billion, up 1.1% compared with $2.68 billion in the second quarter and down 10.0% from $3.01 billion in the third quarter of 2016.
5. Total operating expenditure for the third quarter of $4.35 billion, down 0.7% compared with $4.38 billion in the second quarter and down 8.2% from $4.74 billion in the third quarter of 2016.
6. On a GAAP basis, net income for the third quarter of fiscal 2017 of $2.51 billion, compared with net income of $2.35 billion in the second quarter and net income of $2.3.5 billion in the third quarter of 2016.
On a non-GAAP basis, net income for the third quarter of $3.03 billion, compared with net income of $2.86 billion in the second quarter and net income of $2.88 billion in the third quarter of 2016.
7. Cash, cash equivalents and investments as of April 29, 2017 of $67.97 million, compared with $71.84 billion as January 28, 2017 and $65.76 billion as at July 30, 2016.
Additional results and notes
For the third quarter of fiscal 2017, Cisco reported cash flow from operating activities of $3.4 billion, compared with $3.8 billion in the second quarter and $3.1 billion in the third quarter of fiscal 2016.In the third quarter of fiscal 2017, Cisco repurchased approximately 15 million shares of common stock under its stock repurchase program at an average price of $33.71 per share, for an aggregate purchase price of $0.5 billion. As of April 29, 2017, Cisco had repurchased and retired 4.7 billion shares of common stock at an average price of $21.21 per share for an aggregate purchase price of approximately $99.1 billion since the inception of the stock repurchase program.
- Sales of Cisco's next-generation firewall portfolio grew 49%, with 6,000 new customers in the quarter, bringing the total customer base to over
- 73,000.
- Cisco's advanced threat portfolio delivered strong revenue growth of over 30%, as the company added 6,600 new customers, bringing the total number of AMP customers to over 35,000.
- In its data center switching business, Cisco has a combined install base of over 20,000 customers who are using the portfolio to help them build, run, and manage their private and hybrid cloud environments.
- Cisco's ACI portfolio grew 42%, as customers move to 100 gig and look to automate the network and increase network performance, visibility, and security. We added almost 1,200 new Nexus 9K customers in the quarter, bringing the total install base to 12,000.
- APIC adoption continues to increase rapidly with over 380 new ACI customers in Q3, bringing the total to nearly 3,500.
- Total product revenue was flat year-over-year.
Outlook
For the fourth quarter of fiscal 2017, Cisco expects revenue to be in the range of down by between 4% and 6% year on year versus $12.60 billion in the fourth quarter of 2016.
