Cisco Systems, Inc. (NASDAQ:CSCO) Q1 2019 Earnings Conference Call - Final Transcript

May 15, 2019 • 04:30 pm ET


Cisco Systems, Inc. (NASDAQ:CSCO) Q1 2019 Earnings Conference Call - Final Transcript


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Welcome to Cisco's Third 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 Third 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 will 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. The matters we will be discussing today include forward-looking statements, including the guidance we will be providing for the fourth 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 report 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 press release that accompany this call for further details. Cisco will not comment on its financial guidance during the quarter unless it is done through an explicit public disclosure.

In Q2, on October 28, we completed the sale of our SPVSS business and accordingly, had no revenue or expense from that business in Q3 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 in our website to help understand these impacts. The guidance we provided during our Q2 earnings call and today's call has been normalized in the same way.

I will now turn it over to Chuck.

Charles Robbins

Thank you, Marilyn and good afternoon, everyone. We had another strong quarter of performance across the business, demonstrating our ability to execute despite the ongoing uncertainty in both the macro and geopolitical environments. Technology continues to be at the heart of our customer strategy and now more than ever, our market-leading portfolio and differentiated innovation is resonating with them, as they transform their IT infrastructure.

In the quarter, we delivered strong revenue, margins, non-GAAP earnings growth and operating cash flow. As we continue to help our