Cisco Systems, Inc. (NASDAQ: CSCO) rose Thursday after the company reported better-than-expected earnings for its fourth quarter and issued strong first-quarter earnings guidance.
The San Jose-based technology company reported fourth quarter revenue of $12.8 billion, net income on a generally accepted accounting principles (GAAP) basis of $3.8 billion or $0.81 per share, and non-GAAP net income of $3.3 billion or $0.70 per share.
Said CEO Chuck Robbins "We had a very strong finish to a great year and generated our highest quarterly revenue of $12.8 billion.
"Our results demonstrate a combination of strong customer adoption of our latest innovations, the ongoing value customers see in our software and subscription offerings, and excellent execution across our customer segments and geographies. Our strategy is working and we believe that are well-positioned to capture growth across our portfolio with our pipeline of innovation."
On a GAAP basis, total gross margin, product gross margin, and service gross margin were 61.7%, 60.2%, and 66.0%, respectively, as compared with 62.2%, 60.3%, and 67.8%, respectively, in the fourth quarter of 2017.
On a non-GAAP basis, total gross margin, product gross margin, and service gross margin were 62.9%, 61.5%, and 67.1%, respectively, as compared with 63.7%, 61.9%, and 68.8%, respectively, in the fourth quarter of 2017.
Cisco expects to achieve 5%-7% growth in revenue for the first quarter of fiscal 2019, and estimates that GAAP EPS will be $0.69 to $0.74.
Shares in Cisco were ahead of Wednesday’s close by $1.78, or 4.1%, to $45.64
