Cisco Systems(US:CSCO) Huachuang Securities·2024-08-21 06:13Investment Rating - The report does not explicitly state an investment rating for Cisco (CSCO) Core Insights - Cisco's FY2024 revenue was $53.8 billion, a decrease of 6% year-over-year, with Non-GAAP net income of $15.2 billion, down 5% year-over-year, and earnings per share of $3.73. In Q4 alone, revenue was $13.6 billion, down 10% year-over-year, with Non-GAAP net income of $3.5 billion, down 25% year-over-year, and earnings per share of $0.87 [1][5][11] - The company is focusing on investments in AI, cloud, and cybersecurity while optimizing resource allocation through restructuring plans [5][12] - The company expects Q1 FY2025 revenue to be between $13.65 billion and $13.85 billion, with Non-GAAP earnings per share projected between $0.86 and $0.88. For FY2025, revenue is expected to be between $55 billion and $56.2 billion, with Non-GAAP earnings per share projected between $3.52 and $3.58 [11][14] Revenue Breakdown By Product and Service - In FY2024 Q4, data security and observability businesses showed significant growth, while network product revenue declined by 28%. Overall product revenue decreased. For FY2024, network hardware revenue was $29.2 billion, down 15% year-over-year; cybersecurity product revenue was $5.1 billion, up 32%; collaboration product revenue was $4.1 billion, up 2%; observability revenue was $0.8 billion, up 27%; and technical support and services revenue was $14.6 billion, up 5% [7][8] - In Q4 alone, network hardware revenue was $6.8 billion, down 28% year-over-year; cybersecurity product revenue was $1.8 billion, up 81%; collaboration product revenue was $1 billion; observability revenue was $0.2 billion, up 41%; and technical support and services revenue was $3.8 billion, up 6% [7][8] By Region - For FY2024, revenue from the Americas, Europe, Middle East, Africa, and Asia-Pacific was $32 billion, $14.1 billion, and $7.7 billion, respectively, representing year-over-year declines of 4%, 7%, and 8%. In Q4, revenue from these regions was $8.1 billion, $3.5 billion, and $2.1 billion, respectively, with declines of 11% for both the Americas and Europe, and a 6% decline for Asia-Pacific [9][10] FY2025 Guidance - Cisco anticipates Q1 FY2025 revenue between $13.65 billion and $13.85 billion, with Non-GAAP earnings per share between $0.86 and $0.88. For the full FY2025, revenue is expected to be between $55 billion and $56.2 billion, with Non-GAAP earnings per share between $3.52 and $3.58 [11][14]