Cisco reports dip in hardware sales as security and services trend up

Cisco reported revenue of $11.9 billion for its first fiscal quarter ended October 24, 2020, down 9% compared to a year earlier. GAAP net income was $2.2 billion or $0.51 per share, and non-GAAP net income of $3.2 billion or $0.76 per share. The results were ahead of market expectations.

"Our Q1 results reflect good execution with strong margins in a challenging environment," said Kelly Kramer, CFO of Cisco.  "We continued to transform our business through more software offerings and subscriptions, driving 10% year over year growth in remaining performance obligations. We delivered strong growth in operating cash flow and returned $2.3 billion to shareholders."

Highlights:

• Product revenue was down 13% and service revenue up 2%. 
• Revenue by geographic segment was: Americas down 10%, EMEA down 10%, and APJC down 7%. 
• Product revenue was led by growth in Security, up 6%.  
• Infrastructure Platforms was down 16% and Applications was down 8%.
• On a GAAP basis, total gross margin, product gross margin, and service gross margin were 63.6%, 62.7%, and 65.8%, respectively, as compared with 64.3% for each in the first quarter of fiscal 2020.

https://newsroom.cisco.com/press-release-content?type=webcontent&articleId=2109819