Slide 1: Q3 Fiscal Year 2016
Q3 Fiscal Year 2016 Post-Earnings Industry Analyst Conference Call May 19, 2016 Jesse Freund, Director, Global Analyst Relations Marilyn Mora, Head of Investor Relations
Slide 2: Forward-Looking Statements; GAAP Reconciliation
FORWARD-LOOKING STATEMENTS This presentation contains projections and other forward-looking statements regarding future events or the future financial performance of Cisco, including future operating results. These projections and statements are only predictions. Actual events or results may differ
Slide 3: Q3 FY'16 Highlights
Q3 FY’16 Highlights • Delivered strong Q3 results in an uncertain macro environment • Executed well…revenue growth of 3%*y/y and non-GAAP EPS growth of 6%* y/y • Generated strong operating cash flow of >$3B, returned nearly $2B to shareholders • Momentum in 4 key areas: • Security….revenue up 17% y/
Slide 4: Q3 FY'16 – Revenue Highlights
Q3 FY’16 – Revenue Highlights Y/Y % $M Change* Revenue % of Total Switching $3,447 (3%) Switching 26% 29% NGN Routing 1,894 (5%) NGN Routing Collaboration 1,069 10% Collaboration Data Center Data Center 811 1% 1% Wireless Wireless 615 1% 4% SP Video 4% Security Security 482 17% 16% Other Service Pro
Slide 5: Q3 FY'16 Product Orders: Geographic Regions & Customer Segments
Q3 FY’16 Product Orders: Geographic Regions & Customer Segments Geographic Region Y/Y % Change* Customer Segment Y/Y % Change* Americas 4% Enterprise (2%) EMEA 2% Public Sector 6% APJC 1% Commercial 8% Total Cisco 3% Service Provider 0% Total Cisco 3% Product Book to Bill Comfortably above 1 * Year
Slide 6: Q3 FY'16 Non-GAAP Income Statement Details
Q3 FY’16 Non-GAAP Income Statement Details Q3 FY’16 Q3 FY’15 Y/Y Change Total Cisco Total Cisco SP Video Excluding Excluding CPE SP Video SP Video Business CPE CPE $M (except per-share amounts and percentages) Business Business Revenue $12,000 $12,137 $519 $11,618 3% Gross Margin 65.2% 62.5% 16.1% 6
Slide 7: Q3 FY'16 Key Financial Measures
Q3 FY’16 Key Financial Measures $M (except DSO, non-GAAP inventory turns and headcount) Q3 FY’15 Q2 FY’16 Q3 FY’16 Cash and Cash Equivalents and Investments $54,419 $60,375 $63,512 Operating Cash Flow $3,040 $3,922 $3,064 Accounts Receivable $4,889 $4,302 $4,047 Days Sales Outstanding 37 33 33 Inven
Slide 8: Capital Allocation
Capital Allocation $M Q3 FY’15 Q4 FY’15 Q1 FY’16 Q2 FY’16 Q3 FY’16 Share Repurchases $1,008 $1,005 $1,207 $1,262 $649 Dividends Paid 1,070 1,069 1,068 1,065 1,308 Total $2,078 $2,074 $2,275 $2,327 $1,957 Q3 FY’15 Q4 FY’15 Q1 FY’16 Q2 FY’16 Q3 FY’16 Dividends per Share $0.21 $0.21 $0.21 $0.21 $0.26 A
Slide 9: Business Outlook for Q4 Fiscal 2016
Business Outlook for Q4 Fiscal 2016 During the second quarter of fiscal 2016 on November 20, 2015, Cisco completed its divestiture of the Customer Premises Equipment portion of its Service Provider Video Connected Devices business (“SP Video CPE Business”). In order to provide a clear view of Cisco'
Slide 10: Business Outlook for Q4 Fiscal 2016
Business Outlook for Q4 Fiscal 2016 Cisco estimates that GAAP EPS will be $0.48 to $0.53 which is lower than non-GAAP EPS by $0.08 to $0.11 per share in the fourth quarter of fiscal 2016 as follows: Q4 FY’16 Share-based compensation expense $0.05 – $0.06 Amortization of purchased intangible assets a
Slide 11: Q&A
Q&A To ask a question live, click the ‘hand” icon and your line will be un-muted to ask your question. To submit a question online, please submit via the “CHAT” panel and send to “Host and Panelists”