Citing an “easing supply situation,” Cisco reported first quarter revenue of $13.6 billion, up 6% year-over-year, net income (GAAP) of $2.7 billion or $0.65 per share, and non-GAAP net income of $3.5 billion or $0.86 per share.
“Our fiscal 2023 is off to a good start as we delivered the largest quarterly revenue and second highest quarterly non-GAAP earnings per share in our history,” said Chuck Robbins, chair and CEO of Cisco. “These results demonstrate the relevance of our strategy, our differentiated innovation, and our unique position to help our customers become more resilient.”
“We delivered strong results in Q1 and continued to make progress on our business transformation,” said Scott Herren, CFO of Cisco. “Our annualized recurring revenue increased to more than $23 billion, with product ARR growing 12%. This, together with our significant backlog, strong RPO, and easing supply situation, provides us with great visibility and predictability, and supports our increased full year guidance.”
Highlights
- Product revenue up 8% and service revenue was flat.
- Annualized Recurring Revenue (ARR) was $23.2B, up 7% y/y; Product ARR up 12% y/y
o Software revenue of $3.9B, up 5% y/y; Software subscription revenue up 11% y/y - Revenue by geographic segment was: Americas up 5%, EMEA up 11%, and APJC was flat.
- Product revenue performance was led by growth in Secure, Agile Networks up 12%, End-to-End Security up 9%, and Optimized Application Experiences up 7%. Internet for the Future was down 5% and Collaboration was down 2%.
- On a GAAP basis, total gross margin, product gross margin, and service gross margin were 61.2%, 59.2%, and 67.3%, respectively, as compared with 62.4%, 61.5%, and 65.2%, respectively, in the first quarter of fiscal 2022.
- On a non-GAAP basis, total gross margin, product gross margin, and service gross margin were 63.0%, 61.0%, and 68.8%, respectively, as compared with 64.5%, 63.8%, and 66.5%, respectively, in the first quarter of fiscal 2022.
- Total gross margins by geographic segment were: 63.0% for the Americas, 63.3% for EMEA and 62.3% for APJC.
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