Professional Documents
Culture Documents
May 9, 2012
FORWARD-LOOKING STATEMENTS
This presentation contains projections and other forward-looking statements regarding future events or the future financial performance of Cisco, including future operating results. These projections and statements are only predictions. Actual events or results may differ materially from those in the projections or other forward-looking statements. Please see Ciscos filings with the SEC, including its most recent filings on Form 10-K and 10-Q, for a discussion of important risk factors that could cause actual events or results to differ materially from those in the projections or other forwardlooking statements.
GAAP RECONCILIATION
During this presentation references to financial measures of Cisco will include references to non-GAAP financial measures. Cisco provides a reconciliation between GAAP and non-GAAP financial information on our website at www.cisco.com under About Cisco in the Investor Relations section. http://investor.cisco.com/financialstatements.cfm
Cisco Confidential
Opening Remarks
Financial Overview Business Overview and Strategy Guidance
Cisco Confidential
Q3 FY12 Takeaways
Solid quarter executing on three year plan of continued profitable
growthrecord revenue, Non-GAAP EPS, Non-GAAP operating income and Non-GAAP net income
Our vision and strategy are working value proposition and
environment.
Cisco Confidential
Opening Remarks
Financial Overview Business Overview and Strategy Guidance
Cisco Confidential
Percentage Q3 FY12 $6,466 3,160 1,962 $11,588 Q3 FY11 63.7% 65.1% 62.4% 63.9% Q2 FY12 62.7% 64.5% 57.5% 62.4% Q3 FY12 62.7% 63.9% 63.3% 63.1%
Historical product revenue is available on our website at http://investor.cisco.com under Financial Reporting in the Investor Relations section.
Cisco Confidential
Q3 FY11 $10,866 5% 8,669 2,197 63.9% 63.1% 67.0% 3,988 36.7% 27.2% $2,349 (5%) $0.42 0%
Cisco Confidential
Q2 FY12 $11,527 11% 9,118 2,409 62.4% 60.9% 68.0% 3,922 34.0% 28.4% $2,563 23% $0.47 27%
Q3 FY12 $11,588 7% 9,106 2,482 63.1% 62.0% 67.1% 4,003 34.5% 28.6% $2,605 11% $0.48 14%
7
Net Sales Year/Year Growth Product Service Gross Margin Product Gross Margin Service Gross Margin Operating Expenses OPEX (% of Revenue) Operating Income (% of Revenue) Net Income Year/Year Growth EPS (diluted) Year/Year Growth
2010 Cisco and/or its affiliates. All rights reserved.
Net Sales Product Service Gross Margin Product Gross Margin Service Gross Margin Operating Expenses OPEX (% of Revenue)
20.1%
$1,807 $0.33
23.7%
$2,182 $0.40
23.7%
$2,165 $0.40
Cisco Confidential
GAAP Operating Income Share-based compensation expense Amortization of acquisition-related intangible assets Other acquisition-related costs Significant asset impairments and restructurings Total non-GAAP adjustments
$ 3,311
28.6%
Cisco Confidential
37
$1,442 10.3 $4,257
31
$1,590 10.8 $4,192
31
$1,497 11.1 $4,369
$11,699
73,408 $329
Amount Purchased ($M)
$12,462
63,870 $322
Number of Shares (M)
$12,648
65,223 $432
Avg. Price Per Share
Q3 FY12 Purchases
$550
27
$20.28
*Approximately $7.7B remaining authorized funds in repurchase program as of the end of Q3 FY12.
Cisco Confidential
10
Opening Remarks
Financial Overview Business Overview and Strategy Guidance
Cisco Confidential
11
Y/Y Growth %
Americas
EMEA APJC Total Cisco
5%
0% 7% 4%
(1)%
Public Sector
Commercial* Service Provider Total Cisco
3%
8% 5% 4%
* Includes Consumer
Cisco Confidential
12
Revenue % of Total
Switching
$3,644
5%
NGN Routing
Collaboration Service Provider Video
2,143
1,007 1,002
0%
0% 12%
Other
9% 18% Service
Wireless
Security Data Center
425
345 291
20%
9% 67%
Other Product
Service Total Cisco
249
2,482 $11,588
(14%)
13% 7%
Cisco Confidential
13
Opening Remarks
Financial Overview Business Overview and Strategy Guidance
Cisco Confidential
14
Forward-Looking Statements
These presentation slides and the related conference call contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events (such as statements regarding our ability to execute our long-term strategic plan, our competitive performance, the role of the intelligent network, our value proposition with customers and our strategy regarding market transitions) and the future financial performance of Cisco that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including: business and economic conditions and growth trends in the networking industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; overall information technology spending; the growth and evolution of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider market and other customer markets; the return on our investments in certain priorities, including our foundational priorities, and in certain geographical locations; the timing of orders and manufacturing and customer lead times; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; variability of component costs; variations in sales channels, product costs or mix of products sold; our ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; increased competition in our product and service markets, including the data center; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks; product defects and returns; litigation involving patents, intellectual property, antitrust, shareholder and other matters, and governmental investigations; natural catastrophic events; a pandemic or epidemic; our ability to achieve the benefits anticipated from our investments in sales, engineering, service, marketing, and manufacturing activities; our ability to recruit and retain key personnel; our ability to manage financial risk, and to manage expenses during economic downturns; risks related to the global nature of our operations, including our operations in emerging markets, currency fluctuations and other international factors; changes in provision for income taxes, including changes in tax laws and regulations or adverse outcomes resulting from examinations of our income tax returns; potential volatility in operating results; and other factors listed in Ciscos most recent reports on Form 10-K and 10-Q filed on September 14, 2011 and February 21, 2012, respectively. The financial information contained in these presentation slides and the related conference call should be read in conjunction with the consolidated financial statements and notes thereto included in Ciscos most recent reports on Form 10-K and 10-Q, as each may be amended from time to time. Ciscos results of operations for the three and nine months ended April 28, 2012 are not necessarily indicative of Ciscos operating results for any future periods. Any projections in these presentation slides and the related conference call are based on limited information currently available to Cisco, which is subject to change. Although any such projections and the factors influencing them will likely change, Cisco will not necessarily update the information, since Cisco will only provide guidance at certain points during the year. Such information speaks only as of the date of these presentation slides and the related conference call.
2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15