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Oct 24, 2020
Cisco Q1 2021 Earnings Report
Cisco's first quarter results reflected a decrease in revenue and earnings per share compared to the previous year, but showed signs of improvement amidst pandemic-related challenges.
Key Takeaways
Cisco reported a decrease in revenue by 9% year-over-year, with total revenue reaching $11.9 billion. GAAP earnings per share decreased by 25% to $0.51, while non-GAAP EPS decreased by 10% to $0.76. The company is focusing on software offerings and subscriptions to transform its business, with a 10% growth in remaining performance obligations.
Total revenue decreased by 9% year-over-year to $11.9 billion.
GAAP EPS decreased by 25% year-over-year to $0.51.
Non-GAAP EPS decreased by 10% year-over-year to $0.76.
Cash flow from operating activities increased by 14% year-over-year to $4.1 billion.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Cisco expects a revenue decline of 0% to 2% year-over-year for Q2 FY 2021. The non-GAAP EPS is expected to be in the range of $0.74 to $0.76, with a GAAP EPS estimate of $0.55 to $0.60.
Positive Outlook
- Non-GAAP gross margin rate is expected to be between 64% and 65%.
- Non-GAAP operating margin rate is expected to be between 32% and 33%.
- Non-GAAP tax provision rate is expected to be 19%.
Challenges Ahead
- Revenue is expected to decline by 0% to 2% year-over-year.
- GAAP gross margin rate is expected to be between 62% and 63%.
- GAAP operating margin rate is expected to be between 24.5% and 25.5%.
- Restructuring plan may result in pretax charges of approximately $900 million.
- Future acquisitions/divestitures, asset impairments, restructurings and significant tax matters or other events, may impact guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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