Cisco Systems Inc (NASDAQ:CSCO) stock rose 3.97% (As on August 17, 11:41:12 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23. The product revenue up 20% and service revenue up 4%. Revenue by geographic segment was: Americas up 21%, EMEA up 10%, and APJC up 7%. Product revenue performance was led by growth in Secure, Agile Networks up 33%, Optimized Application Experiences up 15%, and Internet for the Future up 3%. Collaboration was down 12%. End-to-End Security was flat. On a non-GAAP basis, total gross margin, product gross margin, and service gross margin were 65.9%, 65.5%, and 67.5%, respectively, as compared with 63.3%, 61.3%, and 69.0%, respectively, in the fourth quarter of fiscal 2022. Total gross margins by geographic segment were: 65.0% for the Americas, 68.4% for EMEA and 65.3% for APJC. On a non-GAAP basis, net income was $4.7 billion, an increase of 36%.

Further, Remaining Performance Obligations (RPO) was $34.9 billion, up 11% in total, with 51% of this amount to be recognized as revenue over the next 12 months. Product RPO were up 12% and service RPO were up 9%. Deferred Revenue was $25.6 billion, up 10% in total, with deferred product revenue up 10%. Deferred service revenue was up 9%.

Meanwhile, in the fourth quarter of fiscal 2023, the company had closed the following acquisitions: Lightspin Technologies Ltd., a privately held cloud security software company; Smartlook, s.r.o., a privately held company that provides a digital experience and product analytics solution that monitors user engagement on websites and mobile applications in real time; and Armorblox, Inc., a privately held company focused on the use of Large Language Models and natural language understanding in cybersecurity.

CSCO in the fourth quarter of FY 23 has reported the adjusted earnings per share of $1.14, beating the analysts’ estimates for the adjusted earnings per share of $1.06, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 16 percent to $15.2 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue by 1.04%. Non-GAAP operating income was $5.4 billion, up 27%, with non-GAAP operating margin at 35.4%.

Additionally, the company has declared a quarterly dividend of $0.39 per common share to be paid on October 25, 2023, to all stockholders of record as of the close of business on October 4, 2023.