Cisco Systems CSCOdelivered third-quarter fiscal 2018 non-GAAP earnings of 66 cents per share coming ahead of the Zacks Consensus Estimate by a penny. Further, the figure rose 10% from the year-ago quarter.
Revenues increased 4.4% year over year to $12.463 billion and marginally surpassed the Zacks Consensus Estimate of $12.
Strength witnessed in company’s Security and Applications segments drove year-over-year growth. Order strength and improving traction of the subscription-based model were other tailwinds.
Top-line Details
Products(74.7% of total revenues) increased 4.7% to $9.30 billion.
Services(25.3%) advanced 3.4% to $3.16 billion. This was driven by growth in software and solutions services.
Almost 32% of the revenues were recurring in nature gaining 2% from the year-ago quarter.
Revenues from subscriptions represent 55% of the company’s software revenues.
Recurring software and subscriptions generated $5.6 billion deferred product revenues, which surged 29% from the year-ago quarter.
Geographically, Americas, EMEA and APJC reported revenue growth of 2%, 9% and 7% on a year-over-year basis, respectively. Total emerging markets grew 7% and the BRICs plus Mexico climbed 12%.
In terms of customer segments, enterprise increased 11%, while service provider dropped 4%. However, commercial and public sector rose 7% and 2%, respectively.
Total product orders increased 4%. Cisco has realigned Product segments into four distinct categories — infrastructure platform, applications, security, and other.