Cisco Systems, Inc. (NASDAQ:CSCO) Q1 2018 Earnings Conference Call Transcript

Nov 15, 2017 • 04:30 pm ET

Previous

Cisco Systems, Inc. (NASDAQ:CSCO) Q1 2018 Earnings Conference Call Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Welcome to the Cisco's First Quarter Fiscal Year 2018 Financial Results Conference Call. At the request of Cisco, today's call is being recorded. If you have any objections you may disconnect.

Now, I would like to introduce Marilyn Mora, Head of IR. Ma'am, you may begin.

Executive
Marilyn Mora

Thanks, Mark. Welcome, everyone to Cisco's First Quarter Fiscal 2018 Quarterly Earnings Conference Call. This is Marilyn Mora, Head of IR, and I'm joined by Chuck Robbins, our CEO; and Kelly Kramer, our CFO.

By now, you should have seen our earnings press release. A corresponding webcast with slides, including supplemental information, will be made available on our website in the Investor Relations section following the call. Income statements, full GAAP to non-GAAP reconciliation information, balance sheets, cash flow statements, and other financial information can also be found in the Financial Information section of our Investor Relations website.

As a reminder, effective in Q1, we began reporting our revenue in the following categories: Infrastructure Platforms, Applications, Security, Other Products and Services. As discussed in our Q4 earnings call and in our October 23 press release, this change better aligns our product categories with our evolving business model. Our segments will continue to be based on geographies which consists of the Americas, EMEA, and APJC. So, this change only impacts how we report revenue by product category. We've include quarterly reclassified revenue amounts for the last three fiscal years on our website. Click on the financial reporting section of the website to access these documents.

Throughout this conference call, we will be referencing both GAAP and non-GAAP financial results, and we'll discuss product results in terms of revenue and geographic and customer results in terms of product orders, unless stated otherwise. All comparisons throughout this call will be made on a year-over-year basis unless stated otherwise.

(Forward- Looking Cautionary Statements)

With that, I'll now turn it over to Chuck.

Executive
Chuck Robbins

Thank you, Marilyn, and, good afternoon, everyone. Our results this quarter demonstrate the continued progress we're making on our strategic priorities. In Q1, we delivered a solid quarter with revenue of $12.1 billion and non-GAAP EPS of $0.61. We are seeing great traction with our new intent-based networking solutions, delivering accelerated innovation across our portfolio and offering a broader range of new consumption options to our customers, resulting in strong increases in our software and subscription revenue. The progress we've made resulted in all three of our geographic regions returning to orders growth during Q1.

Cisco has always been about connecting people, information and machines at scale. Today, the network is becoming more pervasive and critical to business success as billions of new connections are added. We expect these new connections will become increasingly automated, intelligent and secure, delivering unprecedented insights and intelligence to our customers.

Cisco's vision is to deliver highly secure intuitive technology across our portfolio that is designed to constantly learn, adapt and protect to drive business outcomes with greater speed and agility. This extends to the network, next generation data center architectures, advanced