Cisco reported financial results for the third quarter. Cisco reported third quarter revenue of $12.8 billion, up 7% year-over-year, net income of $2.9 billion or $0.68 per share, and non-GAAP net income of $3.5 billion or $0.83 per share. The company also stated that 81% of software revenue sold as a subscription, up from 76% last quarter.
Third quarter highlights
- Revenue: Total revenue was up 7% at $12.8 billion, with product revenue up 6% and service revenue up 8%. Revenue by geographic segment was: Americas up 2%, EMEA up 11%, and APJC up 19%.
- Gross Margin: On a GAAP basis, total gross margin, product gross margin, and service gross margin were 63.9%, 62.6%, and 67.4%, respectively, as compared with 64.9%, 63.7%, and 67.7%, respectively, in the third quarter of fiscal 2020.
- Operating Expenses: On a GAAP basis, operating expenses were $4.7 billion, up 8%, and were 36.9% of revenue. Non-GAAP operating expenses were $4.1 billion, up 9%, and were 32.4% of revenue.
- Operating Income: GAAP operating income was $3.5 billion, up 1%, with GAAP operating margin of 27.1%. Non-GAAP operating income was $4.3 billion, up 3%, with non-GAAP operating margin at 33.6%.
Chuck Robbins, Chairman and CEO, Cisco, said,
“Cisco had a great quarter with strong demand across the business. We are confident in our strategy and our ability to lead the next phase of the recovery as our customers accelerate their adoption of hybrid work, digital transformation, cloud, and continued strong uptake of our subscription-based offerings.”
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