Cisco reported third-quarter revenue of $12.5 billion, GAAP net income of $2.7 billion or $0.56 per share, and non-GAAP net income of $3.2 billion or $0.66 per share. Total GAAP gross margin and product gross margin were 62.3% and 61.0%, respectively. Product gross margin decreased compared with 61.7% in the third quarter of fiscal 2017.
"We are executing well against our strategy, our innovation pipeline has never been stronger, and we continue to make great progress in transforming towards more software and subscriptions," said Chuck Robbins, Chairman and CEO, Cisco. "I am confident with our position in the industry and the impact we will continue to drive with our customers."
Some highlights
- Product revenue was up 5%
- Service revenue was up 3%
- There were strong sales of the Catalyst 9K products and Cisco now has over 5,800 customers and high uptake of its advanced subscription offer
- Infrastructure Platforms product revenu increased by 2%
- Applications revenue increased by 19%
- Security revenue increased by 11%
- 32% of total revenue was from recurring offers, up 2 percentage points yoy
- Deferred revenue from software subscriptions is at $5.6 billion, up 29% yoy
- Revenue by geographic segment was: Americas up 2%, EMEA up 9%, and APJC up 7%.
- In terms of product orders, enterprise grew by 11% yoy, public sector by 2%, commercial by 7%, and service provider declined by 4%.
