Cisco Reports Fourth Quarter and Fiscal Year 2017 Earnings

SAN JOSE, CA–(Marketwired – Aug 16, 2017) – Cisco (NASDAQ: CSCO)

Q4 Revenue: $12.1 billion

Decrease of (4)% year over year

Recurring revenue was 31% of total revenue, up 4 pts year over year

Q4 Earnings per Share: $0.48 GAAP; $0.61 non-GAAP

FY 2017 Earnings per Share: $1.90 GAAP; $2.39 non-GAAP

Q1 FY 2018 Outlook:

Revenue: (3)% to (1)% decline year over year

Earnings per Share: GAAP: $0.48 to $0.53; Non-GAAP: $0.59 to $0.61

Cisco today reported fourth quarter and fiscal year results for the period ended July 29, 2017. Cisco reported fourth quarter revenue of $12.1 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.4 billion or $0.48 per share, and non-GAAP net income of $3.1 billion or $0.61 per share.
“We had another strong quarter and a transformative year. We made tremendous progress transitioning our business to more software and recurring revenue and delivered on our commitment to accelerate innovation in our core and across the portfolio,” said Chuck Robbins, CEO, Cisco. “The network has never been more critical to business success and we are building the network of the future.”

 

Q4 GAAP Results

 

 
 
Q4 FY 2017
 
Q4 FY 2016
 
Vs. Q4 FY 2016

Revenue
 
$
12.1
 billion
 
$
12.6
 billion
 
(4)%

Net Income
 
$
2.4
 billion
 
$
2.8
 billion
 
(14)%

Diluted Earnings per Share (EPS)
 
$
0.48
 
 
$
0.56
 
 
(14)%

 

Q4 Non-GAAP Results

 

 
 
Q4 FY 2017
 
Q4 FY 2016
 
Vs. Q4 FY 2016

Net Income
 
$
3.1
 billion
 
$
3.2
 billion
 
(3)%

EPS
 
$
0.61
 
 
$
0.63
 
 
(3)%

 

Fiscal Year GAAP Results

 

 
 
FY 2017
 
FY 2016
 
Vs. FY 2016

Revenue (excluding SP Video CPE Business for all periods)
 
$
48.0
 billion
 
$
48.7
 billion
 
(2)%

Revenue (including SP Video CPE Business for all periods)
 
$
48.0
 billion
 
$
49.2  billion
 
(3)%

Net Income
 
$
9.6
 billion
 
$
10.7
 billion
 
(11)%

EPS
 
$
1.90
 
 
$
2.11
 
 
(10)%

 

Fiscal Year Non-GAAP Results

 

 
 
FY 2017
 
FY 2016
 
Vs. FY 2016

Net Income (excluding SP Video CPE Business for all periods)
 
$
12.1
 billion
 
$
12.0
 billion
 
–%

EPS (excluding SP Video CPE Business for all periods)
 
$
2.39
 
 
$
2.36
 
 
1%

 
 
 
 
 
 
 
 
 
 
 

Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP basis are provided in the tables located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”
“We delivered another solid quarter and fiscal year. We executed well, drove solid profitability, strong cash flow, and we continued to deliver on our strategic growth priorities,” said Kelly Kramer, CFO, Cisco. “We will continue to focus on making the right bets to offer the most innovative technologies to our customers in the way they want to consume it and deliver value to our shareholders.”
Financial Summary
All comparative percentages are on a year-over-year basis unless otherwise noted.
Q4 FY 2017 Highlights
Revenue — Total revenue was $12.1 billion, down 4%, with product revenue down 5% and service revenue up 1%. 31% of total revenue was from recurring offers, up 4 percentage points from the fourth quarter of fiscal 2016. Revenue by geographic segment was: Americas down 6%, EMEA down 6%, and APJC up 6%. Product revenue performance was led by Wireless and Security which increased 5% and 3%, respectively. NGN Routing and Switching revenue each decreased 9%. Service Provider Video, Data Center, and Collaboration revenue decreased 10%, 4%, and 3%, respectively.
Gross Margin — On a GAAP basis, total gross margin and product gross margin were 62.2% and 60.3%, respectively. The decrease in the product gross margin compared with 62.2% in the fourth quarter of fiscal 2016 was primarily due to pricing, partially offset by productivity improvements and to a lesser extent product mix.
Non-GAAP total gross margin and product gross margin were 63.7% and 61.9%, respectively. The decrease in non-GAAP product gross margin compared with 63.9% in the fourth quarter of fiscal 2016 was also primarily due to pricing, partially offset by continued productivity improvements and to a lesser extent product mix.
GAAP service gross margin was 67.8% and non-GAAP service gross margin was 68.8%.
Total gross margins by geographic segment were: 64.0% for the Americas, 63.8% for EMEA and 62.1% for APJC.
Operating Expenses — On a GAAP basis, operating expenses were $4.5 billion, down 3%. Non-GAAP operating expenses were $3.9 billion, down 7%, and were 32.2% of revenue.
Operating Income — GAAP operating income was $3.0 billion, down 8%, with GAAP operating margin of 25.0%. Non-GAAP operating income was $3.8 billion, down 4%, with non-GAAP operating margin at 31.5%.
Provision for Income Taxes — The GAAP tax provision rate was 23.8%. The non-GAAP tax provision rate was 22.3%.
Net Income and EPS — On a GAAP basis, net income was $2.4 billion and EPS was $0.48. On a non-GAAP basis, net income was $3.1 billion, a decrease of 3%, and EPS was $0.61, a decrease of 3%.
Cash Flow from Operating Activities — was $4.0 billion for the fourth quarter of fiscal 2017, an increase of 5% compared with $3.8 billion for the fourth quarter of fiscal 2016.
FY 2017 Highlights
The revenue and non-GAAP information in this section is presented excluding the SP Video CPE Business for fiscal 2016 as it was divested during the second quarter of fiscal 2016 on November 20, 2015.
Revenue — Total revenue was $48.0 billion, a decrease of 2%.
Net Income and EPS — On a GAAP basis, net income was $9.6 billion and EPS was $1.90. On a non-GAAP basis, net income was $12.1 billion, flat compared to fiscal 2016, and EPS was $2.39, an increase of 1%.
Cash Flow from Operating Activities — was $13.9 billion for fiscal 2017, compared with $13.6 billion for fiscal 2016, an increase of 2%.
Balance Sheet and Other Financial Highlights
Cash and Cash Equivalents and Investments — were $70.5 billion at the end of the fourth quarter of fiscal 2017, compared with $68.0 billion at the end of the third quarter of fiscal 2017, and compared with $65.8 billion at the end of fiscal 2016. The total cash and cash equivalents and investments available in the United States at the end of the fourth quarter of fiscal 2017 were $3.0 billion.
Deferred Revenue — was $18.5 billion, up 12% in total, with deferred product revenue up 23%, driven largely by subscription-based and software offerings, and deferred service revenue was up 6%. The portion of product deferred revenue related to recurring software and subscription offers increased 50%.
Product Backlog — was approximately $4.8 billion at the end of fiscal 2017, an increase of 3% compared with the balance at the end of fiscal 2016.
Capital Allocation — In the fourth quarter of fiscal 2017, Cisco declared and paid a cash dividend of $0.29 per common share, or $1.4 billion. For the full fiscal year, Cisco declared and paid cash dividends of $1.10 per common share, or $5.5 billion.
For the fourth quarter of fiscal 2017, Cisco repurchased approximately 38 million shares of common stock under its stock repurchase program at an average price of $31.61 per share for an aggregate purchase price of $1.2 billion. For the full fiscal year, Cisco repurchased approximately 118 million shares of common stock under its stock repurchase program at an average price of $31.38 per share for an aggregate purchase price of $3.7 billion. As of July 29, 2017, Cisco had repurchased and retired 4.7 billion shares of Cisco common stock at an average price of $21.30 per share for an aggregate purchase price of approximately $100.3 billion since the inception of the stock repurchase program. The remaining authorized amount for stock repurchases under this program is approximately $11.7 billion with no termination date. For the full fiscal year, Cisco returned $9.2 billion to shareholders through share buybacks and dividends.
Acquisitions — In the fourth quarter of fiscal 2017, we closed the acquisition of MindMeld, Inc. and the acquisition of the advanced analytics team and associated intellectual property developed by Saggezza. We also announced our intent to acquire Viptela, Inc., a privately held company that provides software-defined wide area networking products, and Observable Networks, Inc., a privately held company that offers cloud-native network forensics security applications delivered as a service. Both acquisitions closed in the first quarter of fiscal 2018.
Business Outlook for Q1 FY 2018
Cisco expects to achieve the following results for the first quarter of fiscal 2018:

Q1 FY 2018
 
 

Revenue
 
(3)% to (1)% decline Y/Y

Non-GAAP gross margin rate
 
63% – 64%

Non-GAAP operating margin rate
 
29.5% – 30.5%

Non-GAAP tax provision rate
 
22%

Non-GAAP EPS
 
$0.59 – $0.61

 
 
 

Cisco estimates that GAAP EPS will be $0.48 to $0.53 which is lower than non-GAAP EPS by $0.08 to $0.11 per share in the first quarter of fiscal 2018.
A reconciliation between the Business Outlook for Q1 FY 2018 on a GAAP and non-GAAP basis is provided in the table entitled “GAAP to non-GAAP Business Outlook for Q1 FY 2018” located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”
Editor’s Notes:

Q4 fiscal year 2017 conference call to discuss Cisco’s results along with its business outlook will be held on Wednesday, August 16, 2017 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international).

Conference call replay will be available from 4:00 p.m. Pacific Time, August 16, 2017 to 4:00 p.m. Pacific Time, August 23, 2017 at 1-800-391-9851 (United States) or 1-203-369-3268 (international). The replay will also be available via webcast on the Cisco Investor Relations website at http://investor.cisco.com.

Additional information regarding Cisco’s financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, August 16, 2017. Text of the conference call’s prepared remarks will be available within 24 hours of completion of the call. The webcast will include both the prepared remarks and the question-and-answer session. This information, along with the GAAP to non-GAAP reconciliation information, will be available on the Cisco Investor Relations website at http://investor.cisco.com.

 
 

CISCO SYSTEMS, INC.
 

CONSOLIDATED STATEMENTS OF OPERATIONS
 

(In millions, except per-share amounts)
 

(Unaudited)
 

 
 

 
 
Three Months Ended
 
 
Fiscal Year Ended
 

 
 
July 29,
2017
 
 
July 30,
2016
 
 
July 29,
2017
 
 
July 30,
2016
 

REVENUE:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Product
 
$
9,027
 
 
$
9,552
 
 
$
35,705  
 
$
37,254
 

 
Service
 
 
3,106
 
 
 
3,086
 
 
 
12,300
 
 
 
11,993
 

 
 
Total revenue
 
 
12,133
 
 
 
12,638
 
 
 
48,005
 
 
 
49,247
 

COST OF SALES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Product
 
 
3,586
 
 
 
3,614
 
 
 
13,699
 
 
 
14,161
 

 
Service
 
 
1,001
 
 
 
1,049
 
 
 
4,082
 
 
 
4,126
 

 
 
Total cost of sales
 
 
4,587
 
 
 
4,663
 
 
 
17,781
 
 
  18,287
 

GROSS MARGIN
 
 
7,546
 
 
 
7,975
 
 
 
30,224
 
 
 
30,960
 

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Research and development
 
 
1,499
 
 
 
1,601
 
 
 
6,059
 
 
 
6,296
 

 
Sales and marketing
 
 
2,318
 
 
 
2,443
 
 
 
9,184
 
 
 
9,619
 

 
General and administrative
 
 
495
 
 
 
533
 
 
 
1,993
 
 
 
1,814
 

 
Amortization of purchased intangible assets
 
 
58
 
 
 
82
 
 
 
259
 
 
 
303
 

 
Restructuring and other charges
 
 
142
 
 
 
13
 
 
  756
 
 
 
268
 

 
 
Total operating expenses
 
 
4,512
 
 
 
4,672
 
 
 
18,251
 
 
 
18,300
 

OPERATING INCOME
 
 
3,034
 
 
 
3,303
 
 
 
11,973
 
 
 
12,660
 

 
Interest income
 
 
360
 
 
 
273
 
 
 
1,338
 
 
 
1,005
 

 
Interest expense
 
 
(222
)
 
 
(180
)
 
 
(861
)
 
 
(676
)

 
Other income (loss), net
 
 
8
 
 
 
(2
)
 
 
(163
)
 
 
(69
)

 
 
Interest and other income (loss), net
 
 
146
 
 
 
91
 
 
 
314
 
   
260
 

INCOME BEFORE PROVISION FOR INCOME TAXES
 
 
3,180
 
 
 
3,394
 
 
 
12,287
 
 
 
12,920
 

Provision for income taxes
 
 
756
 
 
 
581
 
 
 
2,678
 
 
 
2,181
 

NET INCOME
 
$
2,424
 
 
$
2,813
 
 
$
9,609
 
 
$
10,739
 

Net income per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Basic
 
$
0.49
 
 
$
0.56
 
 
$
1.92
 
 
$
2.13
 

 
Diluted
 
$
0.48
 
 
$
0.56
 
 
$
1.90
 
 
$
2.11
 

Shares used in per-share calculation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Basic
 
 
4,993
 
 
 
5,031
 
 
 
5,010
 
 
 
5,053
 

 
Diluted
 
 
5,027
 
 
 
5,067
 
 
 
5,049
 
 
 
5,088
 

Cash dividends declared per common share
 
$
0.29
 
 
$
0.26
 
 
$
1.10
 
 
$
0.94
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

CISCO SYSTEMS, INC.

REVENUE BY SEGMENT

(In millions, except percentages)

 

 
 
July 29, 2017

 
 
Three Months Ended
 
Fiscal Year Ended

 
 
 
 
 
 
 
 
Excluding SP Video CPE Business
 
Including SP Video CPE Business

   
Amount
 
Y/Y %
 
Amount
 
Y/Y %
 
Y/Y %

Revenue:
 
 
 
 
 
 
 
 
 
 
 
 

 
Americas
 
$
7,202
 
(6)%
 
$
28,351
 
(2)%
 
(4)%

 
EMEA
 
 
2,927
 
(6)%
 
 
12,004
 
(2)%
 
(2)%

 
APJC
 
 
2,004
 
6%
 
 
7,650
 
2%
 
1%

 
 
Total
 
$
12,133
 
(4)%
 
$
48,005
 
(2)%
 
(3)%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

During the second quarter of fiscal 2016 on November 20, 2015, Cisco completed its divestiture of the SP Video CPE Business. SP Video CPE Business revenue for fiscal 2016 was $504 million.

 

CISCO SYSTEMS, INC.

GROSS MARGIN PERCENTAGE BY SEGMENT

(In percentages)

 

 
 
July 29, 2017

 
 
Three Months Ended
 
Fiscal Year Ended

Gross Margin Percentage:
 
 
 
 

 
Americas
 
64.0%
 
64.5%

 
EMEA
 
63.8%
 
65.4%

 
APJC
 
62.1%
 
62.0%

   
 
 
 
 

 

CISCO SYSTEMS, INC.

REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES

(In millions, except percentages)

 

 
 
July 29, 2017

 
 
Three Months Ended
 
Fiscal Year Ended

 
 
Amount
 
Y/Y %
 
Amount
 
Y/Y % (1)

Revenue:
 
 
 
 
 
 
 
 
 
 

 
Switching
 
$
3,439
 
(9)%
 
$
13,949
 
(5)%

 
NGN Routing
 
 
1,893
 
(9)%
 
 
7,831
 
(4)%

 
Collaboration
 
 
1,113
 
(3)%
 
 
4,278
 
(2)%

 
Data Center
 
 
837
 
(4)%
 
 
3,228
 
(4)%

 
Wireless
 
 
799
 
5%
 
 
2,766
 
5%

 
Security
 
 
558
 
3%
 
 
2,153
 
9%

 
Service Provider Video
 
 
227
 
(10)%
 
 
946
 
(23)%

 
Other
 
 
161
 
31%
 
 
554  
53%

 
 
Product
 
 
9,027
 
(5)%
 
 
35,705
 
(3)%

 
 
Service
 
 
3,106
 
1%
 
 
12,300
 
3%

 
 
 
Total
 
$
12,133
 
(4)%
 
$
48,005
 
(2)%

 
 
 
 
 
 
 
 
 
 
 
 
 
 

(1) During the second quarter of fiscal 2016 on November 20, 2015, Cisco completed its divestiture of the SP Video CPE Business. SP Video CPE Business revenue for fiscal 2016 was $504 million.

 

CISCO SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

 

 
 
July 29,
2017
 
July 30,
2016

ASSETS
 
 
 
 
 
 

Current assets:
 
 
 
 
 
 

 
Cash and cash equivalents
 
$
11,708
 
$
7,631

 
Investments
 
 
58,784
 
 
58,125

 
Accounts receivable, net of allowance for doubtful accounts of $211 at July 29, 2017 and $249 at July 30, 2016
 
 
5,146
 
 
5,847

 
Inventories
 
 
1,616
 
 
1,217

 
Financing receivables, net
 
 
4,856
 
 
4,272

 
Other current assets
 
 
1,593
 
  1,627

 
Total current assets
 
 
83,703
 
 
78,719

Property and equipment, net
 
 
3,322
 
 
3,506

Financing receivables, net
 
 
4,738
 
 
4,158

Goodwill
 
 
29,766
 
 
26,625

Purchased intangible assets, net
 
 
2,539
 
 
2,501

Deferred tax assets
 
 
4,239
 
 
4,299

Other assets
 
 
1,511
 
 
1,844

 
TOTAL ASSETS
 
$
129,818
 
$
121,652

LIABILITIES AND EQUITY
 
 
 
 
 
 

Current liabilities:
 
 
 
 
 
 

 
Short-term debt
 
$
7,992
 
$
4,160

 
Accounts payable
 
 
1,385
 
 
1,056

 
Income taxes payable
 
 
98
 
 
517

 
Accrued compensation
 
 
2,895
 
 
2,951

 
Deferred revenue
 
 
10,821
 
 
10,155

 
Other current liabilities
 
 
4,392
 
 
6,072

 
 
Total current liabilities
 
 
27,583  
 
24,911

Long-term debt
 
 
25,725
 
 
24,483

Income taxes payable
 
 
1,250
 
 
925

Deferred revenue
 
 
7,673
 
 
6,317

Other long-term liabilities
 
 
1,450
 
 
1,431

 
Total liabilities
 
 
63,681
 
 
58,067

Total equity
 
 
66,137
 
 
63,585

 
TOTAL LIABILITIES AND EQUITY
 
$
129,818
 
$
121,652

 
 
 
 
 
 
 
 

 
 

CISCO SYSTEMS, INC.
 

CONSOLIDATED STATEMENTS OF CASH FLOWS
 

(In millions)
 

(Unaudited)
 

 
 

 
 
Fiscal Year Ended
 

 
 
July 29,
2017
 
 
July 30,
2016
 

Cash flows from operating activities:
 
 
 
 
 
 
 
 

 
Net income
 
$
9,609
 
 
$
10,739
 

 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
 
 

 
 
Depreciation, amortization, and other
 
 
2,286  
 
 
2,150
 

 
 
Share-based compensation expense
 
 
1,526
 
 
 
1,458
 

 
 
Provision for receivables
 
 
(8
)
 
 
(9
)

 
 
Deferred income taxes
 
 
(124
)
 
 
(194
)

 
 
Excess tax benefits from share-based compensation
 
 
(153
)
 
 
(129
)

 
 
(Gains) losses on divestitures, investments and other, net
 
 
154
 
 
 
(317
)

 
 
Change in operating assets and liabilities, net of effects of acquisitions and divestitures:
 
 
 
 
 
 
 
 

 
 
 
Accounts receivable
 
 
756
 
 
 
(404
)

 
 
 
Inventories
 
 
(394
)
 
 
315
 

 
 
 
Financing receivables
 
 
(1,038
)
 
 
(150
)

 
 
 
Other assets
 
 
15
 
 
 
(37
)

 
 
 
Accounts payable
 
 
311
 
 
  (65
)

 
 
 
Income taxes, net
 
 
60
 
 
 
(300
)

 
 
 
Accrued compensation
 
 
(110
)
 
 
(101
)

 
 
 
Deferred revenue
 
 
1,683
 
 
 
1,219
 

 
 
 
Other liabilities
 
 
(697
)
 
 
(605
)

 
 
 
 
Net cash provided by operating activities
 
 
13,876
 
 
 
13,570
 

Cash flows from investing activities:
 
 
 
 
 
 
 
 

 
Purchases of investments
 
 
(42,702
)
 
 
(46,760
)

 
Proceeds from sales of investments
 
 
28,827
 
 
 
28,778
 

 
Proceeds from maturities of investments
 
 
12,143
 
 
 
14,115
 

 
Acquisition of businesses, net of cash and cash equivalents acquired
 
 
(3,324
)
 
 
(3,161
)

 
Proceeds from business divestiture
 
 

 
 
 
372
 

 
Purchases of investments in privately held companies
 
 
(222
)
 
 
(256
)

 
Return of investments in privately held companies
 
 
203
 
 
 
91
 

 
Acquisition of property and equipment
 
 
(964
)
 
 
(1,146
)

 
Proceeds from sales of property and equipment
 
 
7
 
 
 
41
 

 
Other
 
 
39
 
 
 
(191
)

 
 
 
 
Net cash used in investing activities
 
 
(5,993
)
 
 
(8,117
)

Cash flows from financing activities:
 
 
 
 
 
 
 
 

 
Issuances of common stock
 
 
708
 
 
 
1,127
 

 
Repurchases of common stock – repurchase program
 
 
(3,685
)
 
 
(3,909
)

 
Shares repurchased for tax withholdings on vesting of restricted stock units
 
 
(619
)
 
 
(557
)

 
Short-term borrowings, original maturities less than 90 days, net
 
 
2,497
 
 
 
(4
)

 
Issuances of debt
 
 
6,980
   
 
6,978
 

 
Repayments of debt
 
 
(4,151
)
 
 
(3,863
)

 
Excess tax benefits from share-based compensation
 
 
153
 
 
 
129
 

 
Dividends paid
 
 
(5,511
)
 
 
(4,750
)

 
Other
 
 
(178
)
 
 
150
 

 
 
 
 
Net cash used in financing activities
 
 
(3,806
)
 
 
(4,699
)

Net increase in cash and cash equivalents
 
 
4,077
 
 
 
754
 

Cash and cash equivalents, beginning of fiscal year
 
 
7,631
 
 
 
6,877
 

Cash and cash equivalents, end of fiscal year
 
$
11,708
 
 
$
7,631
 

 
 
 
 
 
 
 
 
 

Supplemental cash flow information:
 
 
 
 
 
 
 
 

Cash paid for interest
 
$
897
 
 
$
859
 

Cash paid for income taxes, net
 
$ 2,742
 
 
$
2,675
 

 
 
 
 
 
 
 
 
 

 

CISCO SYSTEMS, INC.

DEFERRED REVENUE

(In millions)

 

 
 
July 29,
2017
 
April 29,
2017
 
July 30,
2016

Deferred revenue:
 
 
 
 
 
 
 
 
 

 
Service
 
$
11,302
 
$
10,532
 
$
10,621

 
Product:
 
 
 
 
 
 
 
 
 

 
 
Deferred revenue related to recurring software and subscription businesses
 
 
4,971
 
 
4,352
 
 
3,308

 
 
Other product deferred revenue
 
 
2,221
 
 
2,438
 
 
2,543

 
 
Total product deferred revenue
 
 
7,192
 
 
6,790
 
 
5,851

 
 
 
Total
 
$
18,494
 
$
17,322
 
$
16,472

Reported as:
 
 
 
 
 
 
 
 
 

 
Current
 
$
10,821
 
$
10,344  
$
10,155

 
Noncurrent
 
 
7,673
 
 
6,978
 
 
6,317

 
 
 
Total
 
$
18,494
 
$
17,322
 
$
16,472

 
 
 
 
 
 
 
 
 
 
 
 
 

 

CISCO SYSTEMS, INC.

DIVIDENDS PAID AND REPURCHASES OF COMMON STOCK

(In millions, except per-share amounts)

 

 
 
DIVIDENDS
 
STOCK REPURCHASE PROGRAM
 
TOTAL

Quarter Ended
 
Per Share
 
Amount
 
Shares
 
Weighted-Average Price per Share
 
Amount
 
Amount

Fiscal 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
July 29, 2017
 
$
0.29
 
$
1,448
 
38
 
$
31.61
 
$
1,201
 
$
2,649

 
April 29, 2017
 
 
0.29
 
 
1,451
 
15
 
 
33.71
 
 
503
 
 
1,954

 
January 28, 2017
 
 
0.26
 
 
1,304
 
33  
 
30.33
 
 
1,001
 
 
2,305

 
October 29, 2016
 
 
0.26
 
 
1,308
 
32
 
 
31.12
 
 
1,001
 
 
2,309

 
 
$
1.10
 
$
5,511
 
118
 
$
31.38
 
$
3,706
 
$
9,217

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Fiscal 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
July 30, 2016
 
$
0.26
 
$
1,309
 
28
 
$
28.70
 
$
800
 
$
2,109

 
April 30, 2016
 
 
0.26
 
 
1,308
 
27
 
 
24.08
 
 
649
 
 
1,957

 
January 23, 2016
 
 
0.21
 
 
1,065
 
48
 
 
26.12
 
 
1,262  
 
2,327

 
October 24, 2015
 
 
0.21
 
 
1,068
 
45
 
 
26.83
 
 
1,207
 
 
2,275

 
 
Total
 
$
0.94
 
$
4,750
 
148
 
$
26.45
 
$
3,918
 
$
8,668

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

CISCO SYSTEMS, INC.
 

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
 

 
 

GAAP TO NON-GAAP NET INCOME
 

(In millions, except per-share amounts)
 

 
 

 
 
Three Months Ended
 
 
Fiscal Year Ended
 

 
 
July 29,
2017
 
 
July 30,
2016
 
 
July 29,
2017
 
 
July 30,
2016
 

GAAP net income
 
$
2,424
 
 
$
2,813
 
 
$
9,609
 
 
$
10,739
 

 
Adjustments to cost of sales:
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 

 
 
Share-based compensation expense
 
 
56
 
 
 
52
 
 
 
219
 
 
 
212
 

 
 
Amortization of acquisition-related intangible assets
 
 
140
 
 
 
141
 
 
 
483
 
 
 
507
 

 
 
Supplier component remediation charge (adjustment), net
 
 
(18
)
 
 

 
 
 
(47
)
 
 
(74
)

 
 
Acquisition-related/divestiture costs
 
 

 
 
 

 
 
 
1
 
 
 
1
 

 
 
Significant asset impairments and restructurings
 
 

 
 
 

 
 
 

 
 
 
(2
)

 
Total adjustments to GAAP cost of sales
 
 
178
 
 
 
193
 
 
 
656
 
 
 
644
 

 
Adjustments to operating expenses:
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
Share-based compensation expense
 
 
344
 
 
 
293
 
 
 
1,307
 
 
 
1,220
 

 
 
Amortization of acquisition-related intangible assets
 
 
58
 
 
 
82
 
 
 
259
 
 
 
303
 

 
 
Acquisition-related/divestiture costs (1)
 
 
62
 
 
 
82
 
 
 
219
 
 
 
27
 

 
 
Significant asset impairments and restructurings
 
 
142
 
 
 
13
 
 
 
756
 
 
 
268
 

 
Total adjustments to GAAP operating expenses
 
 
606
 
 
 
470
 
 
 
2,541
 
 
 
1,818
 

 
Total adjustments to GAAP income before provision for income taxes
 
 
784
 
 
 
663
 
 
  3,197
 
 
 
2,462
 

 
Income tax effect of non-GAAP adjustments
 
 
(235
)
 
 
(196
)
 
 
(847
)
 
 
(623
)

 
Significant tax matters
 
 
108
 
 
 
(91
)
 
 
108
 
 
 
(556
)

 
Total adjustments to GAAP provision for income taxes
 
 
(127
)
 
 
(287
)
 
 
(739
)
 
 
(1,179
)

Non-GAAP net income
 
$
3,081
 
 
$
3,189
 
 
$
12,067
 
 
$
12,022
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Diluted net income per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

GAAP
 
$ 0.48
 
 
$
0.56
 
 
$
1.90
 
 
$
2.11
 

Non-GAAP
 
$
0.61
 
 
$
0.63
 
 
$
2.39
 
 
$
2.36
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(1) During the second quarter of fiscal 2016 on November 20, 2015, Cisco completed its divestiture of the SP Video CPE Business. This sale resulted in a pre-tax gain of $253 million, net of certain transaction costs incurred. The gain on this transaction was excluded from non-GAAP net income for fiscal 2016.

 

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

 

GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, AND NET INCOME

(In millions, except percentages)

 
 
 
 

 
 
Three Months Ended
 

 
 
July 29, 2017
 

 
 
Product Gross Margin
 
 
Service Gross Margin
 
 
Total Gross Margin
 
 
Operating Expenses
 
 
Y/Y
 
 
Operating Income
 
 
Y/Y
 
 
Net Income
 
 
Y/Y
 

GAAP amount
 
$
5,441
 
 
$
2,105
 
 
$
7,546
 
 
$ 4,512
 
 
(3
)%
 
$
3,034
 
 
(8
)%
 
$
2,424
 
 
(14
)%

% of revenue
 
 
60.3
%
 
 
67.8
%
 
 
62.2
%
 
 
37.2
%
 
 
 
 
 
25.0
%
 
 
 
 
 
20.0
%
 
 
 

Adjustments to GAAP amounts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Share-based compensation expense
 
 
23
 
 
 
33
 
 
 
56
 
 
 
344
 
 
 
 
 
 
400
 
 
 
 
 
 
400
 
 
 
 

 
Amortization of acquisition-related intangible assets
 
 
140
 
 
  —
 
 
 
140
 
 
 
58
 
 
 
 
 
 
198
 
 
 
 
 
 
198
 
 
 
 

 
Supplier component remediation charge (adjustment), net
 
 
(18
)
 
 

 
 
 
(18
)
 
 

 
 
 
 
 
 
(18
)
 
 
 
 
 
(18
)
 
 
 

 
Acquisition/divestiture-related costs
 
 

 
 
 

 
 
 

 
 
 
62
 
 
 
 
 
 
62
 
 
 
 
 
 
62
 
 
 
 

 
Significant asset impairments and restructurings
 
 

 
 
 

 
 
 

 
 
 
142
 
 
 
 
 
 
142
 
 
 
 
 
 
142
   
 
 

 
Income tax/significant tax matters
 
 

 
 
 

 
 
 

 
 
 

 
 
 
 
 
 

 
 
 
 
 
 
(127
)
 
 
 

 
Non-GAAP amount
 
$
5,586
 
 
$
2,138
 
 
$
7,724
 
 
$
3,906
 
 
(7
)%
 
$
3,818
 
 
(4
)%
 
$
3,081
 
 
(3
)%

% of revenue
 
 
61.9
%
 
 
68.8
%
 
 
63.7
%
 
 
32.2
%
 
 
 
 
 
31.5
%
 
 
 
 
 
25.4
%
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 

 
 
Three Months Ended
 

 
 
July 30, 2016
 

 
 
Product Gross Margin
 
 
Service Gross Margin
 
 
Total Gross Margin
 
 
Operating Expenses
 
 
Operating
Income
 
 
Net
Income
 

GAAP amount
 
$
5,938
 
 
$
2,037
 
 
$
7,975
 
 
$
4,672
 
 
$
3,303
 
 
$
2,813
 

% of revenue
 
 
62.2
%
 
 
66.0
%
 
 
63.1
%
 
 
37.0
%
 
 
26.1
%
 
 
22.3
%

Adjustments to GAAP amounts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Share-based compensation expense
 
  20
 
 
 
32
 
 
 
52
 
 
 
293
 
 
 
345
 
 
 
345
 

 
Amortization of acquisition-related intangible assets
 
 
141
 
 
 

 
 
 
141
 
 
 
82
 
 
 
223
 
 
 
223
 

 
Acquisition/divestiture-related costs
 
 

 
 
 

 
 
 

 
 
 
82
 
 
 
82
 
 
 
82
 

 
Significant asset impairments and restructurings
 
 

 
 
 

 
 
 

 
 
 
13
 
 
 
13
 
 
 
13
 

 
Income tax/significant tax matters
 
 

 
 
 

 
 
 

 
 
 

 
 
  —
 
 
 
(287
)

Non-GAAP amount
 
$
6,099
 
 
$
2,069
 
 
$
8,168
 
 
$
4,202
 
 
$
3,966
 
 
$
3,189
 

% of revenue
 
 
63.9
%
 
 
67.0
%
 
 
64.6
%
 
 
33.2
%
 
 
31.4
%
 
 
25.2
%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

 

GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, AND NET INCOME

(In millions, except percentages)

 
 
 
 

 
 
Fiscal Year Ended
 

 
 
July 29, 2017
 

 
 
Product Gross Margin
 
 
Service Gross Margin
 
 
Total Gross Margin
 
 
Operating Expenses
 
 
Y/Y
 
 
Operating Income
   
Y/Y
 
 
Net Income
 
 
Y/Y
 

GAAP amount
 
$
22,006
 
 
$
8,218
 
 
$
30,224
 
 
$
18,251
 
 

%
 
$
11,973
 
 
(5
)%
 
$
9,609
 
 
(11
)%

% of revenue
 
 
61.6
%
 
 
66.8
%
 
 
63.0
%
 
 
38.0
%
 
 
 
 
 
24.9
%
 
 
 
 
 
20.0
%
 
 
 

Adjustments to GAAP amounts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Share-based compensation expense
 
 
85
 
 
 
134
 
 
 
219
 
 
 
1,307
   
 
 
 
 
1,526
 
 
 
 
 
 
1,526
 
 
 
 

 
Amortization of acquisition-related intangible assets
 
 
483
 
 
 

 
 
 
483
 
 
 
259
 
 
 
 
 
 
742
 
 
 
 
 
 
742
 
 
 
 

 
Supplier component remediation charge (adjustment), net
 
 
(47
)
 
 

 
 
 
(47
)
 
 

 
 
 
 
 
 
(47
)
 
 
 
 
 
(47
)
 
 
 

 
Acquisition/divestiture-related costs
 
 

 
 
 
1
 
 
 
1
 
 
 
219
 
 
 
 
 
 
220
 
 
 
 
 
 
220
 
 
 
 

 
Significant asset impairments and restructurings
 
 

 
   

 
 
 

 
 
 
756
 
 
 
 
 
 
756
 
 
 
 
 
 
756
 
 
 
 

 
Income tax/significant tax matters
 
 

 
 
 

 
 
 

 
 
 

 
 
 
 
 
 

 
 
 
 
 
 
(739
)
 
 
 

 
Non-GAAP amount
 
$
22,527
 
 
$
8,353
 
 
$
30,880
 
 
$
15,710
 
 
(4
)%
 
$
15,170
 
 

%
 
$
12,067
 
 

%

% of revenue
 
 
63.1
%
 
 
67.9
%
 
 
64.3
%
 
 
32.7
%
 
   
 
 
31.6
%
 
 
 
 
 
25.1
%
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

During the second quarter of fiscal 2016 on November 20, 2015, Cisco completed its divestiture of the SP Video CPE Business. Accordingly, the non-GAAP growth rates above are normalized to exclude the SP Video CPE Business.

 
 
 
 

 
 
Fiscal Year Ended
 

 
 
July 30, 2016
 

 
 
Product Gross Margin
 
 
Service Gross Margin
 
 
Total Gross Margin
 
 
Operating Expenses
 
 
Operating
Income
 
 
Net
Income
 

GAAP amount
 
$
23,093
 
 
$
7,867
 
 
$
30,960
 
 
$
18,300
 
 
$
12,660
 
 
$
10,739
 

% of revenue
 
 
62.0
%
 
 
65.6
%
 
 
62.9
%
 
 
37.2
%
 
 
25.7
%
 
 
21.8
%

Adjustments to GAAP amounts:
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Share-based compensation expense
 
 
70
 
 
 
142
 
 
 
212
 
 
 
1,220
 
 
 
1,432
 
 
 
1,432
 

 
Amortization of acquisition-related intangible assets
 
 
507
 
 
 

 
 
 
507
 
 
 
303
 
 
 
810
 
 
 
810
 

 
Supplier component remediation charge (adjustment), net
 
 
(74
)
 
 

 
 
 
(74
)
 
 

 
 
 
(74
)
 
 
(74
)

 
Acquisition/divestiture-related costs
 
 

 
 
 
1
 
 
 
1
 
 
 
27
 
 
 
28
 
 
 
28
 

 
Significant asset impairments and restructurings
 
  (2
)
 
 

 
 
 
(2
)
 
 
268
 
 
 
266
 
 
 
266
 

 
Income tax/significant tax matters
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 
(1,179
)

Non-GAAP amount
 
$
23,594
 
 
$
8,010
 
 
$
31,604
 
 
$
16,482
 
 
$
15,122
 
 
$
12,022
 

 
Less: SP Video CPE Business (1)
 
 
(56
)
 
 

 
 
 
(56
)
 
 
(43
)
 
 
(13
)
 
 
(10
)

Non-GAAP amount (excluding SP Video CPE Business)
 
$
23,538
 
 
$
8,010
 
 
$
31,548
 
 
$
16,439  
 
$
15,109
 
 
$
12,012
 

% of revenue
 
 
64.0
%
 
 
66.8
%
 
 
64.7
%
 
 
33.7
%
 
 
31.0
%
 
 
24.6
%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(1) Reflects four months of operations for the SP Video CPE Business, which was divested during the second quarter of fiscal 2016 on November 20, 2015.

 
 

CISCO SYSTEMS, INC.
 

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
 

 
 

EFFECTIVE TAX RATE
 

(In percentages)
 

 
 

 
 
Three Months Ended
 
 
Fiscal Year Ended
 

 
 
July 29, 2017
 
 
July 30, 2016
 
 
July 29, 2017
 
 
July 30, 2016
 

GAAP effective tax rate
 
23.8
%
 
17.1
%
 
21.8
%
 
16.9
%

 
Total adjustments to GAAP provision for income taxes
 
(1.5
)%
 
4.3
%
 
0.3
%
 
4.9
%

Non-GAAP effective tax rate
 
22.3
%
 
21.4 %
 
22.1
%
 
21.8
%

 
 
 
 
 
 
 
 
 
 
 
 
 

 

GAAP TO NON-GAAP BUSINESS OUTLOOK FOR Q1 FY 2018

 

Q1 FY 2018
 
Gross Margin
Rate
 
Operating Margin
Rate
 
Tax Provision
Rate
 
Earnings per
Share (2)

GAAP
 
61.5% – 62.5%
 
23.5% – 24.5%
 
18%
 
$0.48 – $0.53

Estimated adjustments for:
 
 
 
 
 
 
 
 

Share-based compensation expense
 
0.5%
 
3.0%
 
 
 
$0.04 – $0.05

Amortization of purchased intangible assets and other acquisition-related/divestiture costs
 
1.0%
 
2.0%
 
 
 
$0.03 – $0.04

Restructuring and other charges (1)
 

 
1.0%
 
 
 
$0.01 – $0.02

Income tax effect of non-GAAP adjustments
 

 

 
4%
 
 

Non-GAAP
 
63% – 64%
 
29.5% – 30.5%
 
22%
 
$0.59 – $0.61

 
 
 
 
 
 
 
 
 

(1) In August 2016, we began taking action under a restructuring plan in order to reinvest in our key priority areas in which up to 6,600 employees would be impacted, with estimated pretax charges of approximately $850 million. During fiscal 2017, we have recognized pretax charges of $756 million to our GAAP financial results in relation to this restructuring plan. We expect this plan to be substantially completed by the end of the first quarter of fiscal 2018.
(2) Estimated adjustments to GAAP earnings per share are shown after income tax effects.
Except as noted above, this business outlook does not include the effects of any future acquisitions/divestitures, asset impairments, restructurings and significant tax matters or other events, which may or may not be significant unless specifically stated.
Forward Looking Statements, Non-GAAP Information and Additional Information
This release may be deemed to 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 our progress transitioning our business to more software and recurring revenue, our ability to accelerate innovation in our core and across the portfolio and to build the network of the future, our ability to deliver on our strategic growth priorities, our ability to offer the most innovative technologies to our customers in the way they want to consume it, and our continued ability to deliver value to our shareholders) and the future financial performance of Cisco (including the business outlook for Q1 FY 2018) 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, key growth areas, and in certain geographical locations, as well as maintaining leadership in routing, switching and services; 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; our ability to achieve expected benefits of our partnerships; increased competition in our product and service markets, including the data center market; 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; our ability to achieve the benefits of the announced restructuring and possible changes in the size and timing of the related charges; man-made problems such as cyber-attacks, data protection breaches, computer viruses or terrorism; 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 Cisco’s most recent reports on Forms 10-Q and 10-K filed on May 23, 2017 and September 8, 2016, respectively. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco’s most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. Cisco’s results of operations for the three months and the year ended July 29, 2017 are not necessarily indicative of Cisco’s operating results for any future periods. Any projections in this release 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 this release. This release includes non-GAAP net income, non-GAAP gross margins, non-GAAP operating expenses, non-GAAP operating income and margin, non-GAAP effective tax rates, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non-GAAP basis.
These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco’s results of operations in conjunction with the corresponding GAAP measures.
Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations.
For its internal budgeting process, Cisco’s management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition-related/divestiture costs, significant asset impairments and restructurings, significant litigation and other contingencies, significant gains and losses on investments, the income tax effects of the foregoing and significant tax matters. Cisco’s management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Cisco. In prior periods, Cisco has excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. From time to time in the future there may be other items that Cisco may exclude for purposes of its internal budgeting process and in reviewing its financial results. For additional information on the items excluded by Cisco from one or more of its non-GAAP financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission.
Cisco divested the Customer Premises Equipment portion of the Service Provider Video Connected Devices business (“SP Video CPE Business”) during the second quarter of fiscal 2016 on November 20, 2015. This release includes, where indicated, financial measures that exclude the SP Video CPE Business. Cisco believes that the presentation of these measures provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations because the SP Video CPE Business is no longer part of Cisco and will not be part of Cisco on a go forward basis. Cisco’s management also uses the financial measures excluding the SP Video CPE Business in reviewing the financial results of Cisco.
About Cisco
Cisco (NASDAQ: CSCO) is the worldwide technology leader that has been making the Internet work since 1984. Our people, products and partners help society securely connect and seize tomorrow’s digital opportunity today. Discover more at thenetwork.cisco.com and follow us on Twitter at @Cisco.
Copyright © 2017 Cisco and/or its affiliates. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. To view a list of Cisco trademarks, go to: www.cisco.com/go/trademarks. Third-party trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

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