Cisco exceeds Q4 revenue expectations amid supply chain challenges
The networking giant has released its Q4 and fiscal year results for the period ended 30 July 2022
Cisco says its total revenue for Q4 "exceeded expectations" as it continues to battle supply chain challenges.
The networking giant's latest trading update shows its fourth quarter and fiscal year results for the period ended 30 July 2022.
While the company matched its quarterly revenue from a year ago of $13.1bn, it beat analyst projections of $12.73bn.
Cisco concluded the fiscal year with revenue of $51.6bn - up three per cent year over year - and a non-GAAP net income of $3.4bn.
"We had a strong end to our fiscal year thanks to our Q4 performance," Chuck Robbins, chair and CEO of Cisco, said.
"Our teams executed well in the midst of an incredibly dynamic environment, resulting in the highest full year non-GAAP earnings per share in the history of the company."
Robbins added that full-year product order and backlog are at "record highs" and reflect "strong demand".
Product revenue performance was led by growth in end-to-end security (up 20 per cent), optimised application experiences (up eight per cent), and collaboration (up two per cent).
Cisco also reported annualised recurring revenue at $22.9bn in Q4, up eight per cent year over year.
"Total revenue exceeded our expectations in Q4, as a result of our strong execution and the numerous initiatives we have taken to reduce the impact of the global supply situation," said Scott Herren, CFO of Cisco.
"Our operational discipline is reflected in our healthy operating margin and strong cash flow generation, enabling us to return nearly $4bn to our shareholders in Q4. And we continue to make good progress in our business model transformation with RPO of over $31bn, which, coupled with our record backlog, provide us with substantial visibility and confidence in our future revenue."
Cisco has now set is Q1 FY2023 guidance for 2-4 per cent growth year over year and its fiscal year 2023 guidance for 4-6 per cent growth.