Cisco Systems, Inc. (NASDAQ:CSCO) Q4 2019 Earnings Conference Call Transcript

Aug 14, 2019 • 04:30 pm ET

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Cisco Systems, Inc. (NASDAQ:CSCO) Q4 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to Cisco's Fourth Quarter Fiscal and 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.

Executive
Marilyn Mora

Thanks, Michelle. Welcome everyone to Cisco's Fourth 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 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 first quarter of fiscal 2020. 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 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 Q4 fiscal 2019. As such, all of the revenue, non-GAAP and product orders information we will be discussing today 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. This guidance, we provided during our Q3 earnings call and today's call has been normalized in the same way. With that, I'll now turn it over to Chuck.

Executive
Chuck Robbins

Thank you, Marilyn and good afternoon, everyone. Our Q4 results marked a strong end to a great year. Our teams executed well through a very dynamic environment. We delivered significant innovation across our entire portfolio, and we continued our business model transition with software subscriptions now at 70% of total software revenue up 12 points year-over-year. We delivered strong revenue and double-digit non-GAAP earnings per share growth for the full year and in the fourth quarter. We also continue to generate healthy