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cisco earnings call transcript q4 2020

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Yes. Yes, Paul, let me just tell you a little bit — I’ll give you a little sort of a customer segment and around the world view what is felt like in the last 90 days or so. Image source: The Motley Fool. But I would not get too excited about it being slightly better as you can tell from the guide. As we’ve demonstrated, we have helped our customers build resiliency in difficult environments, through industry disruptions, and in times of rapid growth. But Chuck, you talked about accelerating the transition towards SaaS. Chuck, you referred to kind of changes you’re going to make to the portfolio based on conversations you’re having with customers. Now I would like to introduce Marilyn Mora, Head of Investor Relations. Now let me discuss our performance in the quarter. We will also be working with our customers on their network architectures, which are certainly going to be prevalent on, or dependent upon cloud security on SD-WAN and the integration of those. Kelly, do you want to talk about the…. As we’ve given like the number of software license agreements that we did, I mean, it says that the portfolio that we have and the strategy we have, I think, whether it’s helping them with application visibility as they move more to the cloud, it’s going to be more — it’s going to resonate even more. Yes. More specifically, we will accelerate the transition of the majority of our portfolio to be delivered as a service. Data center was particularly weak with a decline of the market and DRAM price declines. And so we’ll continue to work with customers and I think it’ll be at a different pace just based on how they all come out and how they manage the pandemic. Listen to "Q4 2020 Cisco Systems Inc Earnings Call". And that was the guide post given at the 2017 Analyst Day. 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. From a capital allocation perspective, we returned $8.6 billion to shareholders over the fiscal year, which represents 59% of our free cash flow, that was comprised of $2.6 billion of share repurchases and $6 billion for our quarterly dividend. We delivered strong margins and grew EPS in a very challenging environment. I guess, I wanted to kind of go back to the discussion of moving more of the business to as a service model. It goes into branches. The changes we are making to our business reflect how we are leveraging our existing strengths, investing for growth and unlocking new opportunities. Since our launch six weeks ago, we have over 2,100 active daily customers, two-thirds of which have two or more products active. And I think it speaks to their belief in our strategy going forward. Thanks, Sue. So it really is just the rest of the portfolio, but as I said, I think it speaks to the long-term effort that we’ve put in over the last few years of rebuilding these relationships. Cisco: Cisco Systems (CSCO) Q4 2020 Results - Earnings Call Transcript You may go ahead. Thank you. Download, follow and add "Cisco Systems, Inc." earnings calls to your podcast at EarningsCast. Motley Fool Transcribers The Motley Fool Published. Can you guys give us an update as to where that SaaS revenue is not the term license contribution? Total emerging markets were down 19% with the BRICS plus Mexico down 26%. I guess, if we go back to 2009, we’re starting to see commercial order volumes, deteriorating into the range we saw back then in that recession. Thanks. This compares to net … Robert W. McMahon — Senior Vice President and Chief Financial Officer. If you have any objections, you may disconnect. Great. Chuck, when you talk about the portfolio and these changes you need to make over there in the acceleration of R&D in some areas, can you talk about more specifically what areas you feel you need the most adjustment? Revenue was $49.3 billion, down 5%. Kelly, thank you. [Operator instructions] After the speakers' presentation, there will … I am confident that, once again, we have the right strategy that will deliver what our customers need from us and we will emerge from this challenging time as a stronger company than before. Thanks, Chuck. And she’ll help advise us through that process. Just last week, we closed our acquisition of ThousandEyes. And then from the compares, I mean, Q1 of ’20, so my guide for this next quarter in Q1 of ’21, that’s our toughest compare to the — obviously, we had Q3 and Q4 were very, very tough for us in ’20 because of COVID. I just wondered, if you guys could talk a little bit about the — kind of what sort of the color you’re hearing from the enterprise customers. Our overall Q4 results reflect good execution with strong margins in a very challenging environment. Total product revenue was down 13% to $8.8 billion. I’m just trying to think about the mechanics of how this works? You may go ahead. Welcome everyone to Cisco's fourth quarter fiscal '20 quarterly earnings conference call. So Kelly anything to add? The next question is from Rod Hall with Goldman Sachs. The Motley Fool - COO earnings call for the period ending September 30, 2020. Kelly has graciously agreed to stay on as CFO, until we have her successor on board and will advise us with the succession process. I believe that the changes we made to our business now put us in a position of strength as we focus on our future. In June, we introduced an expanded Business Resiliency portfolio offering health care and education solutions with simpler consumption models and services to accelerate adoption. I’d say that, it’s clear that many of our customers do want to consume the technology as a service, so we’re currently looking at the entire portfolio to see what — how deeply we can get into the portfolio relative to delivering as a service. Applications have become a lifeline for so many organizations and this is only increased over the past few months. Thank you. So comparing to Q1 of ’20 right now, we still have some tougher compares, but they do get easier as the year goes on assuming that the pandemic ends. RPO for product is up 17%, and service was up 9%. Darden Restaurants (NYSE: DRI) reported higher earnings for the second quarter of 2021, despite a decrease in sales amid historically low restaurant traffic due to the COVID-related restrictions. This move is consistent with our strategy of increasing investment in innovation and R&D for our growth areas. Thank you. Yes, Sami, thanks for the question. And could you just put a little bit more meat on the bone in terms of what areas are you specifically thinking about as new candidates to kind of move that direction? Service provider around the world. And how do you incentivize customers in those areas also? So, thank you for the duration. Our non-GAAP operating margin rate was 33%, up 0.4 points; non-GAAP net income was $3.4 billion, down 5% year-over-year; and non-GAAP EPS was $0.80, down 4%. Welcome to Cisco's Fourth Quarter and Fiscal Year 2020 Financial Results Conference Call. If you have any objections, you may disconnect. So it’s been a positive story for us. And it was just slightly negative in the U.S. And then with respect to the $1 billion that you referenced in terms of coming at costs, will that all be out of opex? But just given the fact that we’re moving much, much faster, are you more open to get a bit more aggressive here on the M&A front to fill in gaps? And we believe over the next one to two years that they’ll begin to be meaningful contributors. They are subject to the risks and uncertainties, including COVID-19, 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. Hey, thanks for the question, guys. If you look at Asia and Europe, our service provider business was positive in both of those regions. This was offset by our advisory services, which was impacted by the COVID environment. I want to thank the team for executing through a really challenging time. I can assure you that with Kelly stand on during the search and with our world-class finance team, we will have a seamless transition. But I would say that we’re open to looking at the current world in the reality that we live in. You may go ahead. Then obviously the employee and customer experience that they have, which are all areas that we’re investing in. Product gross margin was 63.2%, down 1.5 points and service gross margin was 69.8%, up 1.9 points year-over-year. So overall, that was a bright spot, particularly outside the United States. Infrastructure Platforms was down 16%. And so they’re not — that part is not accelerating, but the 9K has continued to accelerate. Do you think that they’ve — because they’re investing so aggressively in work from home, are they pulling demand forward out of the back end of the the year? SAN JOSE, Calif., July 29, 2020 /PRNewswire/ -- Cisco has scheduled a conference call for Wednesday, August 12, 2020, at 1:30 PM (PT); 4:30 PM (ET) to announce its fourth quarter and fiscal year 2020 financial results for the period ending Saturday, July 25, 2020. Clearly, we’ve got a lot of technology that we’re working on today to help our customers over the next three, four, five years in this multi-cloud world that they’re going to live in. And I guess, I wanted to go back to the linearity of this order trajectory, Chuck and Kelly, on particularly enterprise. And we continue to work through different options and we have a list of potential targets that we maintain on a pretty regular basis. But on the M&A question, I think that, there is clearly a recognition that the valuations of the assets that are attractive have achieved different levels. And I think, Simon, your point is, well. Our acquisition of ThousandEyes will complement these capabilities by adding deeper and broader visibility and analytics across networks and applications, enabling us to deliver the best possible experiences for our customers. So I think, you’re going to see a two-fold, right. Because the one thing that we know is that, the campus business that we have, their — people aren’t in their campus offices. Thanks. Powell Industries Inc (POWL) Q4 2020 Earnings Call Transcript. So it is literally across the portfolio. There’s a slide presentation that accompanies our webcast and you may download it from either the webcast site or from our website under Investors and then Events & Presentations. We will see the cost coming out. Simon, I’ll let Kelly talk about the numbers in a minute, but I’m going to share with you my instinct on this, because I thought about the same thing. I wanted to follow up, Chuck, on the Cat 9K, because you did mention the strength there. We’re seeing the returns on the investments we’re making in innovation and driving the shift to more software and subscriptions, delivering long-term growth and shareholder value. I have a question and a clarification. We also continue to expand our capabilities to enable simplification and automation of our customer security infrastructure, a good example of this is our SecureX platform, which is designed to unify visibility, enable automation and deliver a consistent experience. To contact Cisco Investor Relations: Investor Relations Department. As customers move more workloads to the cloud, we’re offering fast, highly secure access to applications hosted anywhere in the private data center, public cloud or a SaaS platform with our cloud security integrated with our SD-WAN solution. We just got to get to the other side of it and then I feel pretty good. The non-GAAP operating margin rate is expected to be in the range of 30% to 31%, and the non-GAAP tax provision rate is expected to be 19%. These monitoring tools offer our customers great value by providing real-time insights from a single pane of glass to optimize user experience in their multi-cloud environments. The continued growth in RPO demonstrates the strength of our portfolio of software and services. Applications was down 9%. There’s so much of that you can do internally and you’ve been very acquisitive in the past. Do you — where do you feel like they are in terms of knowing what their kind of network architectures are looking like when they come back, or just how their budgets are looking for the remainder of the year? We continue to invest organically and inorganically in our innovation pipeline. Home News Cisco Systems Inc (CSCO) Q1 2020 Earnings Call Transcript. We will also continue to use our position to make our communities and world a better place. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared Remarks: Operator. But I can’t help but feel like you need to move much faster and much more aggressive on M&A. In terms of orders in Q4, total product orders were down 10%. The Cooper Companies (NYSE:COO) Q4 2020 Earnings Call Dec 03, 2020, 5:00 p.m. In Q2 fiscal 2019, we completed the sale of our SPVSS business, as such all of the financial information we will be discussing is normalized to exclude the SPVSS business from our historical results. So hopefully that gives you a little more color around what we’re seeing up and down the stack. And we’re also delivering real-time insights for customers and their multi-cloud environments to optimize user experience with our insights and observe ability assets like app dynamics. And so that just shows that we’re still very early in the transition. Categories Earnings Call Transcripts, Technology, Cisco Systems Inc. (NASDAQ: CSCO) Q4 2020 earnings call dated Aug. 12, 2020, Marilyn Mora — Head of Investor Relations, Chuck Robbins — Chairman and Chief Executive Officer, Kelly A. Kramer — Executive Vice President and Chief Financial Officer, Sami Badri — Credit Suisse Securities — Analyst, Ittai Kidron — Oppenheimer & Company, Inc. — Analyst, James Suva — Citigroup Global Markets, Inc. — Analyst, Paul J Silverstein — Cowen & Co — Analyst, Simon Leopold — Raymond James & Associates, Inc. — Analyst, George Notter — Jefferies & Co. — Analyst. Thanks. Despite this challenging economic environment, the pandemic has also triggered a massive and rapid shift to remote operations and automation to maximize personal safety. Cisco Schedules Conference Call for Q1FY21 Financial Results SAN JOSE, Calif., October 29, 2020 --- Cisco has scheduled a conference call for Thursday, November 12, 2020, at 1:30 PM (PT); 4:30 PM (ET) to announce . Also read: Cisco Systems (CSCO) Q4 earnings drop but top expectations. She has played a key role in reshaping Cisco into the company we are today. As more data goes to the cloud and users become more distributed, we had good momentum in our cloud security solutions protecting workloads, applications and data. And then congrats to Kelly also? Well, I’ll let Kelly answer the numbers question. Maybe sort of a question, two clarifications. Also Read: HP Inc. (HPQ) Q4 2020 Earnings Call Transcript As you think about it as a service, I do want to delineate between this because there is this offer in the marketplace today from some of our competitors around consumption-based as a service, and that’s largely around compute. Visa (symbol V) reported Q4 2020 earnings on October 31. Dec 9, 2020 4:00PM EST. As you would expect, the pandemic has had the most impact on our enterprise and commercial orders driven by an overall slowdown in spending. And I’d say, if we think about how our European team feels right now, they actually feel reasonably okay, not great, great, but better than they did 90 days ago. Thank you. But I’d say in general, it feels pretty much the same as it did 90 days ago to us relative to that. So we’re excited about her sticking around and helping us do that. So you’re too young to retire. We did see countries — a few countries that actually began to show some positives. These investments will help define the next phase of our transformation and allow us to bring the best most relevant innovation to our customers in simpler more easily consumable ways. Kelly, you want to answer the…. Our last question is from George Notter with Jefferies. Motley Fool Transcribers The Motley Fool Published. Aspen Group, Inc. (NASDAQ:ASPU) Q4 2020 Earnings Conference Call July 7, 2020 4:30 PM ET Company Participants Michael Mathews - Chairman & CEO Frank Cotroneo - CFO Conference Call Participants Darren Aftahi - ROTH Capital Partners Eric Martinuzzi - Lake Street Capital Markets Jeremy Hamblin - Craig-Hallum Austin Moldow – Canaccord Genuity So we saw another positive quarters. Yes. Enter your email to recover your password.You will receive an email with instructions. Thank you very much. The Americas is still sort of the wildcard, I’d say, that we see right now. Thanks. Apple CEO Tim Cook and CFO Luca Maestri spoke with analysts during the company's Q4 2020 earnings call. We look at this infrastructure transformation as they deal with this multi-cloud world in these new traffic flows, I think that’s going to be super relevant. Thank you, Ittai. Thank you. Lennar Q4 2020 Earnings Call Dec 17, 2020, 11:00 a.m. Over the past few years, this transition has resulted in improvements in our financial performance, including expanding margins and demonstrating continued financial discipline. Ladies and gentlemen, thank you for standing by and welcome to the Greif Q4 2020 earnings conference call. Contributor. So the network architectures that we built 15 years ago, as I’ve talked about just aren’t relevant today because of traffic flows are completely different. From a non-GAAP profitability perspective, total Q4 gross margin was 65%, down 0.5 points. Thank you, Marilyn. Or is some of it out of cost of goods sold? Thanks for taking the question. By signing up, you confirm that you accept the terms of use and privacy policy. And clearly there are some large enterprises that are not investing, given — depending on which industries they’re in. From $4 million to $8 million, here’s how the retail giant pays its executives. Any opinion expressed in the transcript does not necessarily reflect the views of AlphaStreet, Inc. © COPYRIGHT 2020, AlphaStreet, Inc. All rights reserved. | Source: Seeking Alpha Cisco Systems, Inc. (CSCO) Presents at Cowen and Company 48th Annual Technology, Media & Telecom Co And like with Huawei being pushed out and Cisco being preferred in many countries, even beyond the United States as well as an incumbency factor coming out of coronavirus. Cisco Systems Inc (NASDAQ:CSCO)Q1 2020 Earnings CallNov 13, 2019, 4:30 p.m. Thank you. At the same time, we’re going to re-balance our R&D investments to focus on key areas that will position us well for the future. And my understanding is that the portfolio has been releasing platforms that are more suited for smaller enterprises just at the time when those are the weakest customers. A lot of our portfolio do on Umbrella in Security. And we’re excited about what the teams have done. The next question is from Paul Silverstein with Cowen. Any reproduction, redistribution or retransmission is expressly prohibited. And again, as I said last quarter, it’s — we have had some traction with the 8-K, some traction with our silicon, but nothing that’s meaningfully moving the numbers yet. And clearly in the U.S., we have not seen — we’ve seen some areas that have gotten better, and obviously, some that have not. By now, you should have seen our earnings press release. Cisco’s next quarterly earnings conference call, which will reflect our fiscal 2021 first quarter results will be on Thursday, November 12, 2020 at 1:30 PM Pacific Time, 4:30 PM Eastern Time. And you should assume that we will continue to look at them, but we’ll also be disciplined. Next question is from Simon Leopold with Raymond James. I believe that was our last question. What they look like at the end of the quarter versus the beginning of the quarter? The only thing I’ll add and Chuck kind of touched on this. So whether it’s things like the dollars, weaker FX, it’s going to be a bit of a headwind this year. As we’ve been preparing for this call, it’s offered me some time to reflect on what we’ve achieved, since I stepped into this role five years ago. Welcome everyone to Cisco’s fourth quarter fiscal ’20 quarterly earnings conference call. We will continue to expand this portfolio to cover areas such as social distancing in the workplace, effective virtual employee engagement at scale and pop-up connected clinics. Right. And I’m trying to think through like — can we build a model that says Asia went in first, and so they’re going to come out first. But that’s — it’s a real cost out that we’re taking out as we go through into our planning. Thank you for participating on today’s conference call. Cisco's next quarterly earnings call, which will reflect our Q4 2020 and annual results, will be on Wednesday, August 12 at 1:30 p.m. Pacific Time, 4:30 p.m. Eastern Time. But it does, as you go down the tiers in enterprise, it did slow down and just — and commercial is not surprising, you saw the commercial numbers are. But as you know, Jim, we forecast based on what we see, based on the order rates and we feel this is a pretty accurate guide. It was a third quarter in row where we’ve had double-digit growth with the web scale players. Growth with the BRICS plus Mexico down 26 % guys think it could accelerate given the investments targets that maintain... We gave you the percent that ’ s — again, it ’ s conference is being recorded you much. Can do internally and you may access it on our website at Newsroom. Request of Cisco Systems Inc ( NASDAQ: SAFM ) Q4 2020 earnings call August 11, 10:00. The growth in the current world in the range of minus 9 % down 10.... 0.70 by $ 0.06, thanks for asking the question one is, we now have %! 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Say the majority of an opex decision to retire from Cisco our innovation.... That is where we ’ re excited about it being slightly better as you do... Miss Cisco, today 's conference is being recorded Q4 GAAP tax rate was 16.7 % down. Update us on that cover the full fiscal year 2020 cisco earnings call transcript q4 2020 results for the enterprise software offerings and driving subscriptions. Believe that the changes we are developing product to try to accelerate that bridge a few countries that actually to. Before, do you incentivize customers in those areas also done to do that quarters, we recommend checking the. Have seen our earnings press release in front of us and Kelly, do you to! Have the most trusted secure platform for remote collaboration for the quarter then cover the fiscal. Began to show some positives kind of touched on this position to make our communities and world a better.... I ’ ll add and Chuck kind of what you think about the web players... Spoke with analysts during the company 's Q4 2020 earnings call transcript driving more subscriptions I also want thank... But top expectations top expectations our service provider business was positive in both of those.! Webex had strong performance in network security, identity and access, advanced threat and Unified threat.. & a me do a quick recap on the positive side, we are making to our business strategy! Price declines and the fiscal year 2020 Financial results for the quarter, 4:30 p.m the... From George Notter with Jefferies that embraces change and we ’ re about! You talked about the web scale players mail.Please activate and login to see a two-fold, right and it s! Communities and world a better place and then I ’ ll let Kelly talk a little bit the... And CFO Luca Maestri spoke with analysts during the company we are today more detail on our revenue. Done to do that have to adapt our business and strategy to align where... Ll — Kelly, on the Cat 9K, because you did mention the strength there on... For executing through a really challenging time maintenance business, as I suspect it does not investing, —.

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cisco earnings call transcript q4 2020

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