Thu, Sep 5, 8:49 PM (131 days ago)
In its fiscal year ending July 27, 2024, Cisco Systems, Inc. reported a revenue decline of 6% to $53,803 million, with product revenue down 9% and services revenue up 5%. The acquisition of Splunk contributed approximately $1.4 billion to revenue. Net income fell 18% to $10,320 million, with diluted earnings per share decreasing 17% to $2.54. Operating expenses rose 6% to $21,160 million, primarily due to increased spending related to the Splunk integration and restructuring charges. The gross margin improved to 64.7%, driven by a favorable product mix and productivity gains, despite negative pricing impacts. The company’s total debt surged to $30,962 million following the Splunk acquisition. Cash and equivalents decreased significantly to $7,508 million, influenced by high acquisition costs and stock repurchases totaling $5,764 million. Future outlook remains cautious amid macroeconomic challenges, but Cisco aims to invest in key growth areas like AI and cybersecurity. Key risks include fluctuations in demand, supply chain constraints, and competition in emerging markets.