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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.
Cisco
Cisco
Cisco Revenue by Segment
Cisco Revenue by Geographic Location
Revenue by Segment
Security Revenue
CapyFin.comServices Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAPJC Revenue
CapyFin.com 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