Cisco Systems, Inc. (NASDAQ: CSCO) stock lost over 2.5% on August 16th, 2017 (as of 7:59PM EDT; Source: Google finance) as they expect a 1% to 3% fall in revenue on a yoy basis for the first quarter of 2018. Non-GAAP gross margin is expected to be in the range of 63% – 64%. Cisco stock has been under pressure and lost over 5.7% in the last three months. But the stock delivered over 7% in this year to date (As of August 16th, 2017; Source: Google finance).
For the fourth quarter of 2017, overall revenue lost 4% yoy to $12.1 billion, wherein the product revenue lost 5% while service revenue rose 1%. But, thirty-one percent of total revenue was from recurring offers, which was up 4 percentage points as compared to the fourth quarter of fiscal 2016. Americas and EMEA revenue lost 6% each while APJC rose 6%. Product revenue performance was driven by Wireless and Security which rose 5% and 3%, respectively. However, NGN Routing and Switching revenue lost 9%. Service Provider Video, Data Center, and Collaboration revenue fell 10%, 4%, and 3%, respectively. Gross margin was under pressure on the back of a pricing pressure which offset productivity improvements.
For the fiscal year of 2017, the revenue lost 2% yoy to $48.0 billion, while net income on a Non GAAP basis was flat to $12.1 billion during the fiscal year of 2017. Cash Flow from Operating Activities rose 2% yoy to $13.9 billion for fiscal 2017. The group expects a lower GAAP EPS in the range of $0.48 to $0.53 for FY18 as compared to non-GAAP EPS of $0.08 to $0.11 per share.
The group maintained a solid cash of $70.5 billion at the end of the fourth quarter of fiscal 2017, from $68.0 billion in the third quarter of fiscal 2017. They finished their acquisition of MindMeld, Inc. and the acquisition of the advanced analytics team and related intellectual property developed by Saggezza. They also intend to acquire Viptela, Inc., as well as Observable Networks, Inc., a privately held company that offers cloud-native network forensics security applications delivered as a service.