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Cisco Systems, Inc. has submitted its 10-Q filing for the quarterly period ended October 26, 2024.
The filing reports a decrease in total revenue to $13.8 billion from $14.7 billion in the same quarter the previous year, with a 9% decline in product revenue and a 6% increase in services revenue.
Product gross margin increased by 0.6 percentage points, driven by favorable product mix and productivity improvements, despite pricing erosion.
Operating expenses rose by 15% to $5.8 billion, primarily due to higher R&D, sales and marketing, and general and administrative expenses.
Operating income decreased by 45% to $2.4 billion, with operating income as a percentage of revenue declining from 29.2% to 17.0%.
Net income for the quarter was $2.7 billion, down from $3.6 billion in the previous year, with diluted earnings per share decreasing from $0.89 to $0.68.
Cash provided by operating activities was $3.7 billion, while cash used for acquisitions, stock repurchases, and dividends totaled $3.8 billion.
Total cash, cash equivalents, and investments increased to $18.7 billion from $17.9 billion at the end of the previous fiscal year.
Cisco's remaining performance obligations decreased to $40.0 billion, and deferred revenue decreased to $27.5 billion.
The company announced a restructuring plan impacting approximately 7% of its global workforce, with estimated pre-tax charges of up to $1 billion.
The filing also highlights risks related to market conditions, competition, supply chain challenges, and regulatory changes that could impact future performance.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Cisco Systems Inc. quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.