- Sales for the third quarter: $ 12.0 billion
- Year growth of 3% over the year - Q3 guidance was 1% to 4% growth year after year (normalized to exclude CPE video business SP Q3 2015)
- Q3 earnings per share: $ 0.46 GAAP; 0.57 non-GAAP $
- P4 Orientation:
- Revenue: 0% - annual growth of 3% over the year (normalized to exclude the company SP video CPE for Q4 2015)
- Earnings per Share: $ 0.48 GAAP - $ 0.53; Non-GAAP: $ 0.59 $ 0.61
"We have delivered a strong Q3, perform well despite a difficult environment," said Chuck Robbins, CEO of Cisco. "I'm satisfied with our performance today and the progress we are making in the transition of our business software and more subscription approach, we continue to implement our entire portfolio. "
The third quarter of fiscal 2016 included 14 weeks compared to 13 weeks in the third quarter of fiscal 2015.
A reconciliation between net income and EPS on a GAAP basis and non-GAAP results is provided in the table following the consolidated statements of income. Additional information relating to other measures under GAAP and non-GAAP is also provided in the following tables.
"Once again, we delivered a solid fourth part in Q3, with growth in turnover of 3%, and even faster EPS growth of non-GAAP and strong margins," said Kelly Kramer, vice Cisco executive chairman and CFO. "We executed well on our financial strategy, allowing us to invest in our business model transition to recurring revenue for our clients are able to use Cisco technology in the way that is best for your company and software. "
Q3 Financial Highlights year 2016:
All comparative percentages are based from year to year unless otherwise stated.
All income, non-GAAP, financial and geographic information in the "Financial Highlights Q3 fiscal 2016" section are presented without the company SP video CPE for prior periods as it was sold in the second quarter the year 2016 November 20, 2015.
Revenues - Revenues were $ 12.0 billion, up 3% with product revenue increased 1% and income services rose 11%. Revenues by geographical area were: Americas up to 4%, down 2% and EMEA APJC up to 10%. product growth in revenues was led by security, collaboration and SP video increased 17%, 10% and 18%, respectively. Wireless and Data Center each increased 1%, while switching and NGN routing declined 3% and 5%, respectively.
Gross margin - On a GAAP basis, total gross margin and product gross margin was 64.3% and 63.8%, respectively. The increase in product gross margin compared to 61.6% in the third quarter of fiscal 2015 was mainly due to the continuous improvement of productivity and the transfer of the company SP video CPE, partially offset by fixing price and product mix to a lesser extent.
Non-GAAP total gross margin and gross margin was 65.2% of revenues and 64.5%, respectively. The margin of non-GAAP gross domestic product was unchanged from the third quarter of fiscal 2015, the continuous improvement of productivity were offset by price and product range to a lesser extent.
The margin of GAAP service was 65.9% and non-GAAP gross service margin was 67.1%.
Total gross margin by geographic segment were 66.3% for the Americas, 65.5% and 60.4%, EMEA for APJC.
Operating expenses - On a GAAP basis, operating expenses were $ 4.7 billion, up 3%. Operating expenses non-GAAP operating income was $ 4.2 billion, up 4%, and 35.2% of sales. Model compared to the end of the second quarter of fiscal 2016 increased from 1447 to 73,104, due to additional increase in acquisitions and investments in key growth areas such as security, cloud and software .
Operating Income - GAAP operating income was $ 3.0 billion, up 2%, with a GAAP operating margin of 24.9%. Non-GAAP operating profit was $ 3.6 billion, up 5%, with an operating margin of 30.0% non-GAAP.
tax benefit - tax provision rates GAAP was 23.8%. The provision rate for non-GAAP tax was 22.0%.
Net income and EPS - On a GAAP basis, net income was $ 2.3 billion and EPS was $ 0.46. On a non-GAAP basis, net income was $ 2.9 billion, an increase of 4% and EPS was $ 0.57, an increase of 6%.
Cash flow from operating activities - was $ 3.1 billion an increase of 1% compared to $ 3.0 billion for the third quarter of fiscal 2015.
Cash and cash equivalents and investments - were $ 63.5 billion at the end of the third quarter of 2016 year compared to $ 60.4 billion at the end of the second quarter of fiscal 2016, and compared with $ 60.4 billion at the end of fiscal 2015. Total cash and cash equivalents and investments available in the US at the end of the third quarter of fiscal 2016 were $ 6.3 billion.
Deferred revenue - was $ 15.3 billion, 8% overall, with revenue deferred revenue increased 9%, largely by software revenue deals and deferred subscription services to 7%. Cisco continued to build a greater mix of recurring revenue in terms of deferred income.
recovery days in accounts receivable (DSO) - was 33 days at the end of the third quarter of fiscal 2016, compared with 33 days at the end of the second quarter of fiscal 2016, and compared with 37 days at the end for the third quarter of fiscal 2015.
Other Financial Highlights:
During the third quarter of fiscal 2016, Cisco declared and paid a cash dividend of $ 0.26 per common share, or $ 1.3 billion per share. For the third quarter of fiscal 2016, Cisco repurchased approximately 27 million common shares under its share repurchase program at an average price of $ 24.08 per share for an aggregate purchase price $ 649 million.
At April 2016, Cisco had repurchased and retired 4.6 million shares of Cisco common stock at an average price of $ 20.99 per share for an aggregate purchase price of approximately $ 95.8 million from the beginning of the share buyback program. The remaining authorized amount for stock repurchases this program is approximately $ 16.2 billion with no termination date.