Cisco Systems, Inc. (NASDAQ:CSCO) Q2 2019 Earnings Conference Call Transcript

Feb 13, 2019 • 04:30 pm ET


Cisco Systems, Inc. (NASDAQ:CSCO) Q2 2019 Earnings Conference Call Transcript


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Welcome to Cisco's Second Quarter Fiscal Year 2019 Financial Results Conference Call. At the request of Cisco, 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. Ma'am, you may begin.

Marilyn Mora

Thanks, Michelle. Welcome, everyone, to Cisco's second quarter fiscal 2019 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 we'll discuss product results in terms of revenue and geographic and customer results in terms of product orders, unless stated otherwise. All comparisons made 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 third quarter of fiscal 2019. 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 Forms 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 press release that accompanies 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.

As a reminder, in Q2, on October 28th, we completed the sale of our SPVSS business and accordingly had no revenue or expense from that business in Q2 fiscal 2019. As such, all of the revenue, non-GAAP and product orders information we will be discussing is normalized to exclude the SPVSS business from our historical results. We have provided historical financial information for the SPVSS business in the slides that accompany this call and on our website to help understand these impacts. As a reminder, the guidance we provided during our Q1 earnings call and today's call has been normalized in the same way.

I will now turn the call over to Chuck.

Chuck Robbins

Thank you, Marilyn, and good afternoon, everyone. This quarter, we again demonstrated that we have built a resilient growth engine that is firing on multiple cylinders. Our strategy of expanding our portfolio while investing in our core markets is delivering unprecedented innovation for our customers and sustainable value for our shareholders. We delivered revenue growth across all geographies and businesses, strong margins, double-digit non-GAAP earnings per share growth and continued solid cash generation.