Cisco Systems, Inc. (NASDAQ:CSCO) Q3 2018 Earnings Conference Call Transcript

May 16, 2018 • 04:30 pm ET

Previous

Cisco Systems, Inc. (NASDAQ:CSCO) Q3 2018 Earnings Conference Call Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Welcome to Cisco's Third Quarter Fiscal Year 2018 financial results conference call. At the request of Cisco Systems, today's conference is being recorded. If you have any objections, you may disconnect. Now, I would like to introduce Marilyn Mora, head of Investor Relations. Thank you and you may begin.Thanks, Michelle. Welcome everyone to Cisco's third quarter fiscal 2018 quarterly earnings conference call. This is Marilyn Mora, Head of Investor Relations. Thank you and you may begin.

Executive
Marilyn Mora

Thanks, Michelle. Welcome everyone to Cisco's third quarter Fiscal 2018 quarterly earnings conference call. This is Marilyn Mora, Head of Investor Relations. And I'm joined by Chuck Robbins, our Chairman and 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.

Throughout this conference call, we will be referencing both GAAP and non-GAAP financial results and will 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.

The matters we will be discussing today include forward-looking statements, including the guidance we will be providing for the fourth quarter of fiscal 2018. They are subject to the risks and uncertainties that we discuss in detail in our documents filed with the SEC, specifically the most recent reports on Form 10-K and 10-Q, which identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements.

With respect to guidance, please also see the slides and the press release that accompany this call for further details. As a reminder, Cisco will not comment on its financial guidance during the quarter unless it is done through an explicit public disclosure.

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

Executive
Chuck Robbins

Thank you, Marilyn. Good afternoon, everyone. We had another great quarter. We are executing well against the strategy we put in place three years ago. Our innovation pipeline has never been stronger and we continue to transform our business to reflect the way customers want to consume our technology.

We delivered another quarter of accelerating revenue growth of 4%, solid margins and record non-GAAP EPS up 10%. Our performance was driven by the acceleration of our intent-based networking portfolio, continuing strong customer demand for our innovative solutions and the increasing value of the network. We also made steady progress in shifting more of our business toward software and subscriptions. This resulted in broad-based strength across our products and geographies.

As I talk with customers around the world, it is clear that the network is playing an increasingly critical role in helping them manage their complex environments. They