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Cisco Systems: How Did It Do in Fiscal 4Q16 and Fiscal 2016?

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Dec. 4 2020, Updated 10:52 a.m. ET

Revenue rose 4% YoY

On August 17, 2016, Cisco Systems (CSCO) announced its fiscal 4Q16 and fiscal 2016 results. It reported revenue of $12.6 billion, an increase of 2% YoY (year-over-year), with EPS (earnings per share) of $0.63.

While product revenue rose 1%, service revenue rose 5% in fiscal 4Q16. Analysts estimated EPS of $0.60 and revenue of $12.6 billion for fiscal 4Q16.

Product revenue was driven by a 16% YoY growth in Cisco’s security segment in fiscal 4Q16. Revenue from its switching, wireless, and collaboration businesses rose 2%, 5%, and 6%, respectively, in fiscal 4Q16. Revenue from Cisco’s Service Provider Video, NGN Routing, and Data Center segments fell 12%, 6%, and 1% YoY, respectively.

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Other highlights of fiscal 2Q16

On a GAAP (generally accepted accounting principles) basis, Cisco’s net income was $2.8 billion, with EPS (earnings per share) of $0.56 in fiscal 4Q16. On a non-GAAP basis, net income and EPS rose 7% and 9% YoY, respectively, in fiscal 4Q16 to $3.2 billion and $0.63, respectively.

Cisco’s GAAP gross margin and product margin stood at 63.1% and 62.2%, respectively. GAAP operating expenses fell 4% YoY to $4.7 billion. The cash flow from operations was $3.8 billion in fiscal 4Q16 compared to $4.1 billion in fiscal 4Q15.

Cisco is a market leader in the networking space. It has a market cap of $151 billion. Its main competitors include VMWare (VMW), Juniper Networks (JNPR), and Europe’s (EFA) Ericsson (ERIC). These companies have market caps of $30.4 billion, $8.8 billion, and $24.3 billion, respectively.

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