Technology

CISCO REPORTS FOURTH QUARTER AND FISCAL YEAR 2024 EARNINGS

Published

1 month ago

August 14, 2024

SAN JOSE, Calif., Aug. 14, 2024 /PRNewswire/ —

News Summary:

Product order growth of 14% year over year; up 6% excluding SplunkRevenue of $13.6 billion in Q4 FY 2024, above the high end of our guidance rangeStrong margins:Q4 FY 2024 GAAP gross margin of 64.4% and Non-GAAP gross margin of 67.9%FY 2024 GAAP gross margin of 64.7% and Non-GAAP gross margin of 67.5%, the highest in 20 yearsSolid growth in software and recurring metrics in FY 2024, enhanced by SplunkTotal subscription revenue of $27.4 billion including Splunk, representing 51% of total revenueTotal annualized recurring revenue (ARR) at $29.6 billion, including $4.3 billion from Splunk, up 22% year over yearTotal software revenue at $18.4 billion, up 9% year over year, with software subscription revenue of $16.4 billion, up 15% year over year, making up 89% of total software revenueQ4 FY 2024 Results:Revenue: $13.6 billionDecrease of 10% year over yearEarnings per Share: GAAP: $0.54; Non-GAAP: $0.87GAAP EPS decreased 44% year over yearNon-GAAP EPS decreased 24% year over yearFY 2024 Results:Revenue: $53.8 billion Decrease of 6% year over yearEarnings per Share: GAAP: $2.54; Non-GAAP: $3.73GAAP EPS decreased 17% year over yearNon-GAAP EPS decreased 4% year over yearQ1 FY 2025 Guidance: Revenue: $13.65 billion to $13.85 billionEarnings per Share: GAAP: $0.35 to $0.42; Non-GAAP: $0.86 to $0.88FY 2025 Guidance: Revenue: $55.0 billion to $56.2 billionEarnings per Share: GAAP: $1.93 to $2.05; Non-GAAP: $3.52 to $3.58

Cisco today reported fourth quarter and fiscal year results for the period ended July 27, 2024. Cisco reported fourth quarter revenue of $13.6 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.2 billion or $0.54 per share, and non-GAAP net income of $3.5 billion or $0.87 per share.

“We delivered a strong close to fiscal 2024,” said Chuck Robbins, chair and CEO of Cisco. “In our fourth quarter, we saw steady customer demand with order growth across the business as customers rely on Cisco to connect and protect all aspects of their organizations in the era of AI.”

“Revenue, gross margin and EPS in Q4 were at the high end or above our guidance range, demonstrating our operating discipline,” said Scott Herren, CFO of Cisco. “As we look to build on our performance, we remain laser focused on growth and consistent execution as we invest to win in AI, cloud and cybersecurity, while maintaining capital returns.”

Q4 GAAP Results

Q4 FY 2024

Q4 FY 2023

Vs. Q4 FY 2023

Revenue

13.6 billion

15.2 billion

(10) %

Net Income

2.2 billion

4.0 billion

(45) %

Diluted Earnings per Share (EPS)

0.54

0.97

(44) %

The acquisition of Splunk, including financing costs, had a negative impact of $0.16 to GAAP EPS, for the fourth quarter of fiscal 2024.

Q4 Non-GAAP Results

Q4 FY 2024

Q4 FY 2023

Vs. Q4 FY 2023

Net Income

3.5 billion

4.7 billion

(25) %

EPS

0.87

1.14

(24) %

The acquisition of Splunk, including financing costs, had a negative impact of $0.04 to Non-GAAP EPS, for the fourth quarter of fiscal 2024.

Fiscal Year GAAP Results

FY 2024

FY 2023

Vs. FY 2023

Revenue

53.8 billion

57.0 billion

(6) %

Net Income

10.3 billion

12.6 billion

(18) %

EPS

2.54

3.07

(17) %

The acquisition of Splunk, including financing costs, had a negative impact of $0.25 to GAAP EPS, for fiscal 2024.

Fiscal Year Non-GAAP Results

FY 2024

FY 2023

Vs. FY 2023

Net Income

15.2 billion

16.0 billion

(5) %

EPS

3.73

3.89

(4) %

The acquisition of Splunk, including financing costs, had a negative impact of $0.04 to Non-GAAP EPS, for fiscal 2024.

Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP basis are provided in the tables located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

Cisco Declares Quarterly Dividend

Cisco has declared a quarterly dividend of $0.40 per common share to be paid on October 23, 2024, to all stockholders of record as of the close of business on October 2, 2024. Future dividends will be subject to Board approval.

Financial Summary

All comparative percentages are on a year-over-year basis unless otherwise noted.

Q4 FY 2024 Highlights

Revenue — Total revenue was $13.6 billion, down 10%, with product revenue down 15% and services revenue up 6%. Splunk contributed approximately $960 million of total revenue for the fourth quarter of fiscal 2024.

Revenue by geographic segment was: Americas down 11%, EMEA down 11%, and APJC down 6%. Product revenue performance reflected growth in Security up 81% and Observability up 41%. Networking was down 28%. Product revenue in Collaboration was flat. Security and Observability, excluding Splunk, grew 6% and 12%, respectively, in the fourth quarter of fiscal 2024.

Gross Margin — On a GAAP basis, total gross margin, product gross margin, and services gross margin were 64.4%, 63.0%, and 67.8%, respectively, as compared with 64.1%, 63.6%, and 65.7%, respectively, in the fourth quarter of fiscal 2023.

On a non-GAAP basis, total gross margin, product gross margin, and services gross margin were 67.9%, 67.0%, and 70.3%, respectively, as compared with 65.9%, 65.5%, and 67.5%, respectively, in the fourth quarter of fiscal 2023.

Total gross margins by geographic segment were: 67.7% for the Americas, 69.2% for EMEA and 66.4% for APJC.

Operating Expenses — On a GAAP basis, operating expenses were $6.2 billion, up 12%, and were 45.2% of revenue. Non-GAAP operating expenses were $4.8 billion, up 4%, and were 35.4% of revenue.

Operating Income — GAAP operating income was $2.6 billion, down 38%, with GAAP operating margin of 19.2%. Non-GAAP operating income was $4.4 billion, down 17%, with non-GAAP operating margin at 32.5%.

Provision for Income Taxes — The GAAP tax provision rate was 9.8%. The non-GAAP tax provision rate was 16.6%.

Net Income and EPS — On a GAAP basis, net income was $2.2 billion, a decrease of 45%, and EPS was $0.54, a decrease of 44%. On a non-GAAP basis, net income was $3.5 billion, a decrease of 25%, and EPS was $0.87, a decrease of 24%.

Cash Flow from Operating Activities — $3.7 billion for the fourth quarter of fiscal 2024, a decrease of 37% compared with $6.0 billion for the fourth quarter of fiscal 2023.

FY 2024 Highlights

Revenue — Total revenue was $53.8 billion, a decrease of 6%. Splunk contributed approximately $1.4 billion of total revenue for fiscal 2024.

Net Income and EPS — On a GAAP basis, net income was $10.3 billion, a decrease of 18%, and EPS was $2.54, a decrease of 17%. On a non-GAAP basis, net income was $15.2 billion, a decrease of 5% compared to fiscal 2023, and EPS was $3.73, a decrease of 4%.

Cash Flow from Operating Activities — $10.9 billion for fiscal 2024, a decrease of 45% compared with $19.9 billion for fiscal 2023.

Balance Sheet and Other Financial Highlights

Cash and Cash Equivalents and Investments — $17.9 billion at the end of the fourth quarter of fiscal 2024, compared with $18.8 billion at the end of the third quarter of fiscal 2024, and compared with $26.1 billion at the end of fiscal 2023.

Remaining Performance Obligations (RPO) — $41.0 billion, up 18% in total, with 51% of this amount to be recognized as revenue over the next 12 months. Product RPO were up 27% and services RPO were up 10%.

Deferred Revenue — $28.5 billion, up 11% in total, with deferred product revenue up 15%. Deferred service revenue was up 9%.

Capital Allocation — In the fourth quarter of fiscal 2024, we returned $3.6 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.40 per common share, or $1.6 billion, and repurchased approximately 43 million shares of common stock under our stock repurchase program at an average price of $46.80 per share for an aggregate purchase price of $2.0 billion. The remaining authorized amount for stock repurchases under the program is $5.2 billion with no termination date.

Guidance

Cisco estimates the following results for the first quarter of fiscal 2025:

Q1 FY 2025

Revenue

$13.65 billion – $13.85 billion

Non-GAAP gross margin

67% – 68%

Non-GAAP operating margin

32% – 33%

Non-GAAP EPS

$0.86 – $0.88

Cisco estimates that GAAP EPS will be $0.35 to $0.42 for the first quarter of fiscal 2025.

Cisco estimates the following results for fiscal 2025:

FY 2025

Revenue

$55.0 billion – $56.2 billion

Non-GAAP EPS

$3.52 – $3.58

Cisco estimates that GAAP EPS will be $1.93 to $2.05 for fiscal 2025.

Our Q1 FY 2025 and FY 2025 guidance assumes an effective tax provision rate of approximately 17% for GAAP and approximately 19% for non-GAAP results.

A reconciliation between the guidance on a GAAP and non-GAAP basis is provided in the tables entitled “GAAP to non-GAAP Guidance” located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

Editor’s Notes:

Q4 fiscal year 2024 conference call to discuss Cisco’s results along with its guidance will be held on Wednesday, August 14, 2024 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international).
Conference call replay will be available from 4:00 p.m. Pacific Time, August 14, 2024 to 4:00 p.m. Pacific Time, August 20, 2024 at 1-866-510-4837 (United States) or 1-203-369-1943 (international). The replay will also be available via webcast on the Cisco Investor Relations website at https://investor.cisco.com.
Additional information regarding Cisco’s financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, August 14, 2024. Text of the conference call’s prepared remarks will be available within 24 hours of completion of the call. The webcast will include both the prepared remarks and the question-and-answer session. This information, along with the GAAP to non-GAAP reconciliation information, will be available on the Cisco Investor Relations website at https://investor.cisco.com.

CISCO SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per-share amounts)

(Unaudited)

Three Months Ended

Fiscal Year Ended

July 27,
2024

July 29,
2023

July 27,
2024

July 29,
2023

REVENUE:

Product

$ 9,858

$ 11,650

$ 39,253

$ 43,142

Services

3,784

3,553

14,550

13,856

Total revenue

13,642

15,203

53,803

56,998

COST OF SALES:

Product

3,644

4,237

14,339

16,590

Services

1,217

1,218

4,636

4,655

Total cost of sales

4,861

5,455

18,975

21,245

GROSS MARGIN

8,781

9,748

34,828

35,753

OPERATING EXPENSES:

Research and development

2,179

1,953

7,983

7,551

Sales and marketing

2,841

2,579

10,364

9,880

General and administrative

763

690

2,813

2,478

Amortization of purchased intangible assets

268

698

282

Restructuring and other charges

112

203

789

531

Total operating expenses

6,163

5,495

22,647

20,722

OPERATING INCOME

2,618

4,253

12,181

15,031

Interest income

270

312

1,365

962

Interest expense

(418)

(111)

(1,006)

(427)

Other income (loss), net

(74)

(306)

(248)

Interest and other income (loss), net

(222)

218

287

INCOME BEFORE PROVISION FOR INCOME TAXES

2,396

4,471

12,234

15,318

Provision for income taxes

234

513

1,914

2,705

NET INCOME

$ 2,162

$ 3,958

$ 10,320

$ 12,613

Net income per share:

Basic

$ 0.54

$ 0.97

$ 2.55

$ 3.08

Diluted

$ 0.54

$ 0.97

$ 2.54

$ 3.07

Shares used in per-share calculation:

Basic

4,018

4,071

4,043

4,093

Diluted

4,035

4,093

4,062

4,105

CISCO SYSTEMS, INC.

REVENUE BY SEGMENT

(In millions, except percentages)

July 27, 2024

Three Months Ended

Fiscal Year Ended

Amount

Y/Y%

Amount

Y/Y%

Revenue:

Americas

$ 8,068

(11) %

$ 31,971

(4) %

EMEA

3,511

(11) %

14,117

(7) %

APJC

2,064

(6) %

7,716

(8) %

Total

$ 13,642

(10) %

$ 53,803

(6) %

Amounts may not sum and percentages may not recalculate due to rounding.

CISCO SYSTEMS, INC.

GROSS MARGIN PERCENTAGE BY SEGMENT

(In percentages)

July 27, 2024

Three Months Ended

Fiscal Year Ended

Gross Margin Percentage:

Americas

67.7 %

66.8 %

EMEA

69.2 %

69.1 %

APJC

66.4 %

67.2 %

CISCO SYSTEMS, INC.

REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES

(In millions, except percentages)

July 27, 2024

Three Months Ended

Fiscal Year Ended

Amount

Y/Y %

Amount

Y/Y %

Revenue:

Networking

$ 6,804

(28) %

$ 29,229

(15) %

Security

1,787

81 %

5,075

32 %

Collaboration

1,019

— %

4,113

2 %

Observability

248

41 %

837

27 %

Total Product

9,858

(15) %

39,253

(9) %

Services

3,784

6 %

14,550

5 %

Total

$ 13,642

(10) %

$ 53,803

(6) %

Security and Observability, excluding Splunk, grew 6% and 12%, respectively, in the fourth quarter of fiscal 2024, and 4% and 15%, respectively, for fiscal 2024.

Amounts may not sum and percentages may not recalculate due to rounding.

CISCO SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

July 27,
2024

July 29,
2023

ASSETS

Current assets:

Cash and cash equivalents

$ 7,508

$ 10,123

Investments

10,346

16,023

Accounts receivable, net of allowance

of $87 at July 27, 2024 and $85 at July 29, 2023

6,685

5,854

Inventories

3,373

3,644

Financing receivables, net

3,338

3,352

Other current assets

5,612

4,352

Total current assets

36,862

43,348

Property and equipment, net

2,090

2,085

Financing receivables, net

3,376

3,483

Goodwill

58,660

38,535

Purchased intangible assets, net

11,219

1,818

Deferred tax assets

6,262

6,576

Other assets

5,944

6,007

TOTAL ASSETS

$ 124,413

$ 101,852

LIABILITIES AND EQUITY

Current liabilities:

Short-term debt

$ 11,341

$ 1,733

Accounts payable

2,304

2,313

Income taxes payable

1,439

4,235

Accrued compensation

3,608

3,984

Deferred revenue

16,249

13,908

Other current liabilities

5,643

5,136

Total current liabilities

40,584

31,309

Long-term debt

19,621

6,658

Income taxes payable

3,985

5,756

Deferred revenue

12,226

11,642

Other long-term liabilities

2,540

2,134

Total liabilities

78,956

57,499

Total equity

45,457

44,353

TOTAL LIABILITIES AND EQUITY

$ 124,413

$ 101,852

CISCO SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

Fiscal Year Ended

July 27,
2024

July 29,
2023

Cash flows from operating activities:

Net income

$ 10,320

$ 12,613

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization, and other

2,507

1,726

Share-based compensation expense

3,074

2,353

Provision for receivables

Deferred income taxes

(972)

(2,085)

(Gains) losses on divestitures, investments and other, net

215

206

Change in operating assets and liabilities, net of effects of acquisitions and divestitures:

Accounts receivable

(289)

734

Inventories

275

(1,069)

Financing receivables

1,102

Other assets

(671)

Accounts payable

(90)

Income taxes, net

(4,539)

1,218

Accrued compensation

(696)

651

Deferred revenue

1,220

2,326

Other liabilities

416

Net cash provided by operating activities

10,880

19,886

Cash flows from investing activities:

Purchases of investments

(4,230)

(10,871)

Proceeds from sales of investments

4,136

1,054

Proceeds from maturities of investments

6,367

5,978

Acquisitions, net of cash and cash equivalents acquired

(25,994)

(301)

Purchases of investments in privately held companies

(284)

(185)

Return of investments in privately held companies

202

Acquisition of property and equipment

(670)

(849)

Other

(5)

(23)

Net cash used in investing activities

(20,478)

(5,107)

Cash flows from financing activities:

Issuances of common stock

714

700

Repurchases of common stock – repurchase program

(5,787)

(4,293)

Shares repurchased for tax withholdings on vesting of restricted stock units

(992)

(597)

Short-term borrowings, original maturities of 90 days or less, net

478

(602)

Issuances of debt

31,818

—

Repayments of debt

(9,826)

(500)

Repayments of Splunk convertible debt, net

(3,140)

—

Dividends paid

(6,384)

(6,302)

Other

(37)

(32)

Net cash provided by (used in) financing activities

6,844

(11,626)

Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted
cash equivalents

(31)

(105)

Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents

(2,785)

3,048

Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of fiscal year

11,627

8,579

Cash, cash equivalents, restricted cash and restricted cash equivalents, end of fiscal year

$ 8,842

$ 11,627

Supplemental cash flow information:

Cash paid for interest

$ 583

$ 376

Cash paid for income taxes, net

$ 7,426

$ 3,571

CISCO SYSTEMS, INC.

REMAINING PERFORMANCE OBLIGATIONS

(In millions, except percentages)

July 27, 2024

April 27, 2024

July 29, 2023

Amount

Y/Y %

Amount

Y/Y %

Amount

Y/Y %

Product

$ 20,055

27 %

$ 18,876

29 %

$ 15,802

12 %

Services

20,993

10 %

19,898

14 %

19,066

9 %

Total

$ 41,048

18 %

$ 38,774

21 %

$ 34,868

11 %

We expect 51% of total RPO at July 27, 2024 will be recognized as revenue over the next 12 months.

CISCO SYSTEMS, INC.

DEFERRED REVENUE

(In millions)

July 27,
2024

April 27,
2024

July 29,
2023

Deferred revenue:

Product

$ 13,219

$ 12,856

$ 11,505

Services

15,256

14,619

14,045

Total

$ 28,475

$ 27,475

$ 25,550

Reported as:

Current

$ 16,249

$ 15,751

$ 13,908

Noncurrent

12,226

11,724

11,642

Total

$ 28,475

$ 27,475

$ 25,550

CISCO SYSTEMS, INC.

DIVIDENDS PAID AND REPURCHASES OF COMMON STOCK

(In millions, except per-share amounts)

DIVIDENDS

STOCK REPURCHASE PROGRAM

TOTAL

Quarter Ended

Per Share

Amount

Weighted-
Average Price
per Share

Amount

Fiscal 2024

July 27, 2024

$ 0.40

$ 1,606

$ 46.80

$ 2,002

$ 3,608

April 27, 2024

$ 0.40

$ 1,615

$ 49.22

$ 1,256

$ 2,871

January 27, 2024

$ 0.39

$ 1,583

$ 49.54

$ 1,254

$ 2,837

October 28, 2023

$ 0.39

$ 1,580

$ 54.53

$ 1,252

$ 2,832

Fiscal 2023

July 29, 2023

$ 0.39

$ 1,589

$ 50.49

$ 1,254

$ 2,843

April 29, 2023

$ 0.39

$ 1,593

$ 49.45

$ 1,259

$ 2,852

January 28, 2023

$ 0.38

$ 1,560

$ 47.72

$ 1,256

$ 2,816

October 29, 2022

$ 0.38

$ 1,560

$ 43.76

$ 502

$ 2,062

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GAAP TO NON-GAAP NET INCOME

(In millions)

Three Months Ended

Fiscal Year Ended

July 27,
2024

July 29,
2023

July 27,
2024

July 29,
2023

GAAP net income

$ 2,162

$ 3,958

$ 10,320

$ 12,613

Adjustments to cost of sales:

Share-based compensation expense

133

103

514

396

Amortization of acquisition-related intangible assets

331

168

936

630

Acquisition-related/divestiture costs

Supplier component remediation charge (adjustment), net

—

(9)

—

(9)

Total adjustments to GAAP cost of sales

485

276

1,484

1,035

Adjustments to operating expenses:

Share-based compensation expense

660

520

2,537

1,951

Amortization of acquisition-related intangible assets

268

698

282

Acquisition-related/divestiture costs

297

700

241

Russia-Ukraine war costs

—

(7)

(12)

—

Significant asset impairments and restructurings

112

203

789

531

Total adjustments to GAAP operating expenses

1,337

849

4,712

3,005

Adjustments to interest and other income (loss), net:

Russia-Ukraine war costs

—

(Gains) and losses on investments

(32)

(55)

100

133

Total adjustments to GAAP interest and other income (loss), net

(55)

149

133

Total adjustments to GAAP income before provision for income
taxes

1,839

1,070

6,345

4,173

Income tax effect of non-GAAP adjustments

(315)

(215)

(1,360)

(838)

Significant tax matters

(155)

(133)

(155)

Total adjustments to GAAP provision for income taxes

(470)

(348)

(1,515)

(807)

Non-GAAP net income

$ 3,531

$ 4,680

$ 15,150

$ 15,979

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GAAP TO NON-GAAP EPS

Three Months Ended

Fiscal Year Ended

July 27,
2024

July 29,
2023

July 27,
2024

July 29,
2023

GAAP EPS

$ 0.54

$ 0.97

$ 2.54

$ 3.07

Adjustments to GAAP:

Share-based compensation expense

0.20

0.15

0.75

0.57

Amortization of acquisition-related intangible assets

0.15

0.06

0.40

0.22

Acquisition-related/divestiture costs

0.08

0.02

0.18

0.06

Russia-Ukraine war costs

0.01

—

0.01

—

Significant asset impairments and restructurings

0.03

0.05

0.19

0.13

(Gains) and losses on investments

(0.01)

0.02

0.03

Income tax effect of non-GAAP adjustments

(0.08)

(0.05)

(0.33)

(0.20)

Significant tax matters

(0.04)

(0.03)

(0.04)

0.01

Non-GAAP EPS

$ 0.87

$ 1.14

$ 3.73

$ 3.89

Amounts may not sum or recalculate due to rounding.

CISCO SYSTEMS, INC.

GAAP TO NON-GAAP EPS

IMPACT OF SPLUNK ACQUISITION, INCLUDING FINANCING COSTS

July 27, 2024

Three Months Ended

Fiscal Year Ended

GAAP EPS Impact

$ (0.16)

$ (0.25)

Amortization of acquisition-related intangible assets

0.09

0.14

Acquisition-related costs

0.06

0.11

Income tax effect of non-GAAP adjustments

(0.03)

(0.05)

Non-GAAP EPS Impact

$ (0.04)

Amounts may not sum due to rounding.

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET,
AND NET INCOME

(In millions, except percentages)

Three Months Ended

July 27, 2024

Product
Gross
Margin

Services
Gross
Margin

Total
Gross
Margin

Operating
Expenses

Y/Y

Operating
Income

Y/Y

Interest
and
other
income
(loss),
net

Net
Income

Y/Y

GAAP amount

$ 6,214

$ 2,567

$ 8,781

$ 6,163

12 %

$ 2,618

(38) %

$ (222)

$ 2,162

(45) %

% of revenue

63.0 %

67.8 %

64.4 %

45.2 %

19.2 %

(1.6) %

15.8 %

Adjustments to GAAP amounts:

Share-based compensation
expense

133

660

793

—

793

Amortization of acquisition-
related intangible assets

331

—

331

268

599

—

599

Acquisition/divestiture-related
costs

297

318

—

318

Russia-Ukraine war costs

—

Significant asset impairments
and restructurings

—

112

—

112

(Gains) and losses on
investments

—

(32)

Income tax effect/significant tax
matters

—

(470)

Non-GAAP amount

$ 6,607

$ 2,659

$ 9,266

$ 4,826

4 %

$ 4,440

(17) %

$ (205)

$ 3,531

(25) %

% of revenue

67.0 %

70.3 %

67.9 %

35.4 %

32.5 %

(1.5) %

25.9 %

Three Months Ended

July 29, 2023

Product
Gross
Margin

Services
Gross
Margin

Total
Gross
Margin

Operating
Expenses

Operating

Income

Interest
and
other
income
(loss),
net

Net

Income

GAAP amount

$ 7,413

$ 2,335

$ 9,748

$ 5,495

$ 4,253

$ 218

$ 3,958

% of revenue

63.6 %

65.7 %

64.1 %

36.1 %

28.0 %

1.4 %

26.0 %

Adjustments to GAAP amounts:

Share-based compensation expense

103

520

623

—

623

Amortization of acquisition-related intangible assets

168

—

168

238

—

238

Acquisition/divestiture-related costs

—

Russia-Ukraine war costs

—

(7)

—

(7)

Supplier component remediation charge (adjustment), net

(9)

—

(9)

—

(9)

—

(9)

Significant asset impairments and restructurings

—

203

—

203

(Gains) and losses on investments

—

(55)

Income tax effect/significant tax matters

—

(348)

Non-GAAP amount

$ 7,626

$ 2,398

$ 10,024

$ 4,646

$ 5,378

$ 163

$ 4,680

% of revenue

65.5 %

67.5 %

65.9 %

30.6 %

35.4 %

1.1 %

30.8 %

Amounts may not sum and percentages may not recalculate due to rounding.

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET,
AND NET INCOME

(In millions, except percentages)

Fiscal Year Ended

July 27, 2024

Product
Gross
Margin

Services
Gross
Margin

Total
Gross
Margin

Operating
Expenses

Y/Y

Operating
Income

Y/Y

Interest
and
other
income
(loss),
net

Net
Income

Y/Y

GAAP amount

$ 24,914

$ 9,914

$ 34,828

$ 22,647

9 %

$ 12,181

(19) %

$ 53

$ 10,320

(18) %

% of revenue

63.5 %

68.1 %

64.7 %

42.1 %

22.6 %

0.1 %

19.2 %

Adjustments to GAAP amounts:

Share-based compensation
expense

214

300

514

2,537

3,051

—

3,051

Amortization of acquisition-
related intangible assets

936

—

936

698

1,634

—

1,634

Acquisition/divestiture-related
costs

700

734

—

734

Russia-Ukraine war costs

—

(12)

Significant asset impairments and
restructurings

—

789

—

789

(Gains) and losses on investments

—

100

Income tax effect/significant tax
matters

—

(1,515)

Non-GAAP amount

$ 26,074

$ 10,238

$ 36,312

$ 17,935

1 %

$ 18,377

(4) %

$ 202

$ 15,150

(5) %

% of revenue

66.4 %

70.4 %

67.5 %

33.3 %

34.2 %

0.4 %

28.2 %

Fiscal Year Ended

July 29, 2023

Product
Gross
Margin

Services
Gross
Margin

Total
Gross
Margin

Operating
Expenses

Operating

Income

Interest
and
other
income
(loss),
net

Net

Income

GAAP amount

$ 26,552

$ 9,201

$ 35,753

$ 20,722

$ 15,031

$ 287

$ 12,613

% of revenue

61.5 %

66.4 %

62.7 %

36.4 %

26.4 %

0.5 %

22.1 %

Adjustments to GAAP amounts:

Share-based compensation expense

151

245

396

1,951

2,347

—

2,347

Amortization of acquisition-related intangible assets

630

—

630

282

912

—

912

Acquisition/divestiture-related costs

—

241

259

—

259

Supplier component remediation charge (adjustment),
net

(9)

—

(9)

—

(9)

—

(9)

Significant asset impairments and restructurings

—

531

—

531

(Gains) and losses on investments

—

133

Income tax effect/significant tax matters

—

(807)

Non-GAAP amount

$ 27,342

$ 9,446

$ 36,788

$ 17,717

$ 19,071

$ 420

$ 15,979

% of revenue

63.4 %

68.2 %

64.5 %

31.1 %

33.5 %

0.7 %

28.0 %

Amounts may not sum and percentages may not recalculate due to rounding.

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

EFFECTIVE TAX RATE

(In percentages)

Three Months Ended

Fiscal Year Ended

July 27,
2024

July 29,
2023

July 27,
2024

July 29,
2023

GAAP effective tax rate

9.8 %

11.5 %

15.6 %

17.7 %

Total adjustments to GAAP provision for income taxes

6.8 %

4.0 %

2.9 %

0.3 %

Non-GAAP effective tax rate

16.6 %

15.5 %

18.5 %

18.0 %

GAAP TO NON-GAAP GUIDANCE

Q1 FY 2025

Gross Margin

Operating Margin

Earnings per
Share (2)

GAAP

63.5% – 64.5%

14% – 15%

$0.35 – $0.42

Estimated adjustments for:

Share-based compensation expense

1.0 %

6.0 %

$0.16 – $0.17

Amortization of acquisition-related intangible assets and acquisition/divestiture-related
costs

2.5 %

6.5 %

$0.17 – $0.18

Significant asset impairments and restructurings(1)

—

5.5 %

$0.13 – $0.16

Non-GAAP

67% – 68%

32% – 33%

$0.86 – $0.88

FY 2025

Earnings per
Share (2)

GAAP

$1.93 – $2.05

Estimated adjustments for:

Share-based compensation expense

$0.74 – $0.76

Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs

$0.60 – $0.62

Significant asset impairments and restructurings (1)

$0.19 – $0.21

Non-GAAP

$3.52 – $3.58

(1) On August 14, 2024, Cisco announced a restructuring plan to allow it to invest in key growth opportunities and drive more efficiencies in its business. In connection with this restructuring plan, Cisco currently estimates that it will recognize pre-tax charges of up to $1 billion consisting of severance and other one-time termination benefits, and other costs. Cisco expects to recognize approximately $700 million to $800 million of these charges in the first quarter of fiscal 2025 with the remaining amount expected to be recognized during the rest of the fiscal year.

(2) Estimated adjustments to GAAP earnings per share are shown after income tax effects.

Except as noted above, this guidance does not include the effects of any future acquisitions/divestitures, significant asset impairments and restructurings, significant litigation settlements and other contingencies, Russia–Ukraine war costs, gains and losses on investments, significant tax matters, or other items, which may or may not be significant.

Forward Looking Statements, Non-GAAP Information and Additional Information

This release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events (such as our customers’ reliance on Cisco to connect and protect their organizations in the era of AI and our focus on growth and consistent execution as we invest in AI, cloud and cybersecurity, while maintaining capital returns) and the future financial performance of Cisco (including the guidance for Q1 FY 2025 and full year FY 2025) that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including: business and economic conditions and growth trends in the networking industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; our development and use of artificial intelligence; overall information technology spending; the growth and evolution of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider market, cloud, enterprise and other customer markets; the return on our investments in certain priorities, key growth areas, and in certain geographical locations, as well as maintaining leadership in Networking and services; the timing of orders and manufacturing and customer lead times; supply constraints; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; variability of component costs; variations in sales channels, product costs or mix of products sold; our ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; our ability to achieve expected benefits of our partnerships; increased competition in our product and services markets, including the data center market; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks; product defects and returns; litigation involving patents, other intellectual property, antitrust, stockholder and other matters, and governmental investigations; our ability to achieve the benefits of restructurings and possible changes in the size and timing of related charges; cyber attacks, data breaches or other incidents; vulnerabilities and critical security defects; our ability to protect personal data; evolving regulatory uncertainty; terrorism; natural catastrophic events (including as a result of global climate change); any pandemic or epidemic; our ability to achieve the benefits anticipated from our investments in sales, engineering, service, marketing and manufacturing activities; our ability to recruit and retain key personnel; our ability to manage financial risk, and to manage expenses during economic downturns; risks related to the global nature of our operations, including our operations in emerging markets; currency fluctuations and other international factors; changes in provision for income taxes, including changes in tax laws and regulations or adverse outcomes resulting from examinations of our income tax returns; potential volatility in operating results; and other factors listed in Cisco’s most recent reports on Forms 10-Q and 10-K filed on May 21, 2024 and September 7, 2023, respectively. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco’s most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. Cisco’s results of operations for the three months and the year ended July 27, 2024 are not necessarily indicative of Cisco’s operating results for any future periods. Any projections in this release are based on limited information currently available to Cisco, which is subject to change. Although any such projections and the factors influencing them will likely change, Cisco will not necessarily update the information, since Cisco will only provide guidance at certain points during the year. Such information speaks only as of the date of this release.

This release includes non-GAAP net income, non-GAAP gross margins, non-GAAP operating expenses, non-GAAP operating income and margin, non-GAAP effective tax rates, non-GAAP interest and other income (loss), net, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non-GAAP basis.

These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles (GAAP) and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco’s results of operations in conjunction with the corresponding GAAP measures.

Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations.

For its internal budgeting process, Cisco’s management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition-related/divestiture costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies, Russia–Ukraine war costs, gains and losses on investments, the income tax effects of the foregoing and significant tax matters. Cisco’s management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Cisco. In prior periods, Cisco has excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. From time to time in the future there may be other items that Cisco may exclude for purposes of its internal budgeting process and in reviewing its financial results. For additional information on the items excluded by Cisco from one or more of its non-GAAP financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission.

Annualized recurring revenue represents the annualized revenue run-rate of active subscriptions, term licenses, operating leases and maintenance contracts at the end of a reporting period, net of rebates to customers and partners as well as certain other revenue adjustments. Includes both revenue recognized ratably as well as upfront on an annualized basis.

About Cisco

Cisco (Nasdaq: CSCO) is the worldwide technology leader that securely connects everything to make anything possible. Our purpose is to power an inclusive future for all by helping our customers reimagine their applications, power hybrid work, secure their enterprise, transform their infrastructure, and meet their sustainability goals. Discover more at newsroom.cisco.com and follow us on X at @Cisco.

Copyright © 2024 Cisco and/or its affiliates. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. To view a list of Cisco trademarks, go to: www.cisco.com/go/trademarks. Third-party trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

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SOURCE Cisco Systems, Inc.

Technology

Announcing Citrea Testnet Launching on Bitcoin Testnet4

Published

57 mins ago

September 24, 2024

With Citrea Testnet, Bitcoin starts to scale its original goal: self-sovereign finance.

GEORGE TOWN, Cayman Islands, Sept. 24, 2024 /PRNewswire/ — Today, Citrea announces the launch of Citrea Testnet on Bitcoin Testnet4. Citrea Testnet marks a significant step towards using Bitcoin as a settlement layer, setting the stage for a decentralized, self-sovereign financial ecosystem on a global scale. Bitcoin is now one step closer to its next phase, the foundation for the world’s finance.

Citrea Testnet introduces a new Bitcoin era for both developers and users, where accessing Bitcoin’s utility doesn’t come at the expense of sacrificing its self-sovereignty. Citrea Testnet is the only working rollup solution allowing EVM developers to build decentralized applications that inherit Bitcoin’s security while leveraging the most trust-minimized way to use BTC.

What is in Citrea Testnet?

Citrea Testnet includes a nearly complete version of Clementine — Citrea’s BitVM-based trust-minimized bridge design — and puts critical bridge infrastructure to the test, such as detecting malicious operators, coordinating pre-signatures, and operator-based withdrawals. The final piece, implementing fraud proofs with BitVM, is underway as the team continues to contribute to the open-source BitVM repository.

Building An Economy On Bitcoin

With Citrea Testnet, Bitcoin can finally start to scale its original goal, self-sovereign finance. Citrea Testnet provides developers with a novel platform to build powerful applications that will achieve both financial inclusion and freedom for new and existing Bitcoin users. By using Bitcoin for both settlement and data availability, Citrea increases BTC’s utility and activates Bitcoin blockspace for a new financial ecosystem.

Key Citrea Features:

Fully EVM Compatible: Citrea’s execution environment supports all EVM tooling and languages, allowing developers to easily deploy smart contracts on a Bitcoin secured platform. Bitcoin Settlement: Once Citrea’s trust-minimized BitVM-based bridge, Clementine, is fully implemented, developers can leverage trust-minimized BTC in their applications.Access to Bitcoin Blockspace: Citrea opens the most secure blockpace to developers, enabling them to build applications and create an economy secured by Bitcoin.

Developers who want to build on Citrea can get directly in touch with the team via Citrea’s developer form.

Citrea plans to ship Mainnet in Q1 2025.

About Citrea

Citrea is the first rollup that increases BTC’s utility and activates Bitcoin blockspace for a new financial ecosystem. Citrea’s vision is to build scalable infrastructure that advances Bitcoin into its next phase, the foundation for the world’s finance. Achieving this vision requires scaling Bitcoin blockspace to increase its transaction capacity and expressivity without changing its consensus rules.

If you want to build on Citrea, please fill out Citrea developer form: https://citrea.typeform.com/incubation
For more information, please visit: https://citrea.xyz/

SOURCE Citrea

Technology

Consumer IAM Market worth $21.0 billion by 2030- Exclusive Report by MarketsandMarkets™

Published

57 mins ago

September 24, 2024

DELRAY BEACH, Fla., Sept. 24, 2024 /PRNewswire/ — When forecasted globally, the Consumer IAM Market is projected to rise from USD 12.5 billion in 2024 to USD 21.0 billion by 2030 at a Compound Annual Growth Rate (CAGR) of 8.9% during the forecast period, according to a new report by MarketsandMarkets™. An increasing significance of strict regulatory compliance has driven the CIAM adoption rapidly. Apart from this, a high volume of online transactions requiring secure user access management is further driving significant expansion in the Consumer IAM Market.

Browse in-depth TOC on “Consumer IAM Market”

693 – Tables
67 – Figures
453 – Pages

Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=87038588

Scope of the Report

Report Metrics

Details

Market size available for years

2018-2030

Base year considered

2023

Forecast period

2024–2030

Forecast units

Value (USD Billion)

Segments Covered

Offering, Solution, Services, Authentication Type, Deployment Mode, Organization Size, Vertical, and Region

Geographies covered

North America, Europe, Asia Pacific, Middle East & Africa, Latin America

Companies covered

Major vendors in the global Consumer IAM Market are IBM (US), Okta (US), SAP (Germany), Microsoft (US), Ping Identity (US), Thales (France), Broadcom (US), AWS (US), Salesforce (US), OpenText (US), Akamai Technology (US), Deloitte (UK), HID Global (US), CyberArk (US), Nevis Security (Switzerland), Simeio Solutions (US), Ubisecure (Finland), OneLogin (US), SecureAuth (US), LoginRadius (Canada), IDology (US), Omada Identity (Denmark), WSO2 (US), WidasConcepts (Germany), FusionAuth (US), Transmit Security (Israel), IDnow (Germany), miniOrange (US), and Strivacity (US).

Rising online transactions, the transition from traditional IAM to CIAM, and the growing popularity of cloud services create substantial prospects within the Consumer IAM Market. Also, the incorporation of lot devices, sophisticated analytics and Al, and the implementation of Zero Trust security frameworks are improving both security measures and user satisfaction. In addition to this, the ongoing market opportunities for the Consumer IAM Market are created by regulatory adherence and the emergence of decentralized identity solutions.

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Based on the services, integration, and deployment to account for the largest market size during the forecast period.

When segmenting the Consumer IAM Market by services, the integration and deployment services acquire the largest market size for several compelling reasons. The CIAM solution, while being implemented in an organization, often poses difficult integration challenges with the existing IT infrastructure, applications, and databases. These integration and deployment services ensure that such solutions are seamlessly integrated into the business environment to provide interoperability and enhanced security. This segment is further driven by the fact that the demand for expert assistance in customizing a CIAM solution remains so that it best fits organizational needs. Besides, with the increasing adoption of cloud-based CIAM solutions comes a greater requirement for professional deployment services that ensure smooth transitions and optimum performance of the solution implemented. Such services provide faster time-to-value, reduced implementation risks, and compliance with regulatory requirements, hence becoming essential in the Consumer IAM Market.

By vertical, healthcare accounts for the highest CAGR during the forecast period.

The Consumer IAM Market is growing at the highest CAGR in the healthcare sector, and there are many factors contributing to this. Increasing digitalization in the healthcare services sector, along with the need for high security in managing patients’ data, generates high demand for robust CIAM solutions. Apart from this, healthcare institutions have to deal with a high number of sensitive data regarding patients, and because of it, they are prone to cyber threats, which in turn increases the demand for advanced security solutions like CIAM. Moreover, regulations like HIPAA in the US are imposing stringent security on patient information, thus raising the adoption rate of CIAM solutions. Further, the increasing adoption of telemedicine and other online health services is another driver for secure access management for patients and healthcare providers, thereby ensuring the confidentiality and integrity of healthcare data.

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By region, North America accounts for the largest market size.

It is estimated that North America holds the largest market size in the Consumer IAM Market; the reason is attributed to its highly advanced technology infrastructure, coupled with the presence of influential economies like the US and Canada. Increasing demand for cloud-based services—fueled by companies expanding their online presence—has increased security threats and increased the need for organizations to implement CIAM solutions, which assure the protection of digital identities. Moreover, the region has witnessed the effect of numerous data breaches, with 422 million people exposed in a year; this demands robust identity management.

To governments in North America, cybersecurity is regarded as one of the prime national security challenges for which budgets and policies have been marked to ultimately make identity management a priority. Some of the Initiatives such as the 2021 executive order by the US president on cybersecurity support the adoption of CIAM solutions. Moreover, the heavy use of smart mobile devices and the exponentially growing eCommerce industry further support market growth in the region.

Top Key Companies in Consumer IAM Market:

IBM (US), Okta (US), SAP (Germany), Microsoft (US), Ping Identity (US), Thales (France), Broadcom (US), AWS (US), Salesforce (US), OpenText (US), Akamai Technology (US), Deloitte (UK), HID Global (US), CyberArk (US), Nevis Security (Switzerland), Simeio Solutions (US), Ubisecure (Finland), OneLogin (US), SecureAuth (US), LoginRadius (Canada), IDology (US), Omada Identity (Denmark), WSO2 (US), WidasConcepts (Germany), FusionAuth (US), Transmit Security (Israel), IDnow (Germany), miniOrange (US), and Strivacity (US) has context menuare the key players and other players in the Consumer IAM Market.

Browse Adjacent Market: Information Security Market Research Reports & Consulting

Browse Other Reports:

Public Safety & Security Market– Global Forecast to 2029

Post-Quantum Cryptography Market– Global Forecast to 2029

Network Security Software Market– Global Forecast to 2029

Security Testing Market– Global Forecast to 2029

Digital Signature Market– Global Forecast to 2028

Get access to the latest updates on Consumer IAM Companies and Consumer IAM Industry

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MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.

Earlier this year, we made a formal transformation into one of America’s best management consulting firms as per a survey conducted by Forbes.

The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.

Built on the ‘GIVE Growth’ principle, we work with several Forbes Global 2000 B2B companies – helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.

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Technology

Optical Transceiver Market is expected to generate a revenue of USD 31.83 Billion by 2031, Globally, at 14.79% CAGR: Verified Market Research®

Published

57 mins ago

September 24, 2024

Verified Market Research® is proud to announce the release of its latest market research report, ” Optical Transceiver Market Size and Forecast,” a comprehensive study tailored to provide industry leaders with actionable insights and strategic guidance. This report offers crucial insights into the rapidly evolving landscape of optical transceivers, a vital technology for the expansion of high-speed data transmission in telecommunication, data centers, and enterprise networks.

LEWES, Del., Sept. 24, 2024 /PRNewswire/ — The Global Optical Transceiver Market Size is projected to grow at a CAGR of 14.79% from 2024 to 2031, according to a new report published by Verified Market Research®. The report reveals that the market was valued at USD 10.56 Billion in 2023 and is expected to reach USD 31.83 Billion by the end of the forecast period.

As the demand for faster and more reliable data transmission surges, optical transceivers have become indispensable in sectors ranging from telecommunications to data centers and cloud services. This report is designed to equip C-level executives, product managers, and decision-makers with the data and analysis needed to drive strategic initiatives, investments, and innovations in this critical market.

Key Insights of the Report Include:

Market Growth Projections: Detailed analysis of the market’s growth trajectory, projected to expand significantly due to the increasing demand for higher bandwidth, cloud computing, and 5G networks.Competitive Landscape: A thorough examination of the competitive environment, featuring key players such as II-VI Incorporated, Accelink Technologies, Lumentum Operations LLC, Sumitomo Electric Industries Ltd., Fujitsu Optical Components Limited, Broadcom Inc, with insights into their strategies, product innovations, and market positioning.Technological Advancements: Analysis of the latest technological innovations, including 400G and 800G transceivers, along with the role of optical transceivers in enabling future-ready networks.Regional Insights: Comprehensive breakdown of market opportunities across North America, Europe, Asia-Pacific, and other key regions, identifying growth hotspots for industry leaders to capitalize on.

Why This Report Matters for Industry leaders:

Actionable Data: Provides precise market forecasts, key trends, and potential challenges that will impact the global optical transceiver market in the coming years.Competitive Edge: Stay ahead of the competition with exclusive insights into R&D activities, mergers and acquisitions, and emerging market disruptors.Customizable Solutions: Our report offers tailored analysis to meet the specific needs of businesses in various sectors, ensuring strategic alignment with market opportunities.

Stay ahead of the curve in the ever-evolving Optical Transceiver Market. For more information or to request a sample copy of the report, please visit: https://www.verifiedmarketresearch.com/download-sample?rid=6698

Browse in-depth TOC on “Global Optical Transceiver Market Size“

202 – Pages
126 – Tables
37 – Figures

Report Scope

REPORT ATTRIBUTES

DETAILS

STUDY PERIOD

2018-2031

GROWTH RATE

CAGR of ~14.79% from 2024 to 2031

BASE YEAR FOR VALUATION

2023

HISTORICAL PERIOD

2018-2023

FORECAST PERIOD

2024-2031

QUANTITATIVE UNITS

Value in USD Billion

REPORT COVERAGE

Historical and Forecast Revenue Forecast, Historical and Forecast Volume, Growth Factors, Trends, Competitive Landscape, Key Players, Segmentation Analysis

SEGMENTS COVERED

Data RateForm FactorFiber TypeDistanceWavelengthConnectorProtocolApplication

REGIONS COVERED

North AmericaEuropeAsia PacificLatin AmericaMiddle East & Africa

KEY PLAYERS

II-VI Incorporated, Accelink Technologies, Lumentum Operations LLC, Sumitomo Electric Industries Ltd., Fujitsu Optical Components Limited, Broadcom Inc.

CUSTOMIZATION

Report customization along with purchase available upon request

Global Optical Transceiver Market Overview

Rising Demand for High-Speed Internet and 5G Networks: The swift implementation of 5G networks and the rising demand for high-speed internet have stimulated expansion in the Optical Transceiver Market. These transceivers are crucial for facilitating rapid data transmission and minimizing latency in communication. With telecommunications companies enhancing their infrastructure, the need for optical transceivers is anticipated to increase significantly, presenting substantial opportunity for industry participants to gain market share and enhance profitability.

Expansion of Data Centers and Cloud Computing: The Optical Transceiver Market is experiencing substantial growth due to the rapid rise of cloud computing and the proliferation of data centers globally. Data centers necessitate high-capacity optical transceivers to efficiently handle substantial data loads. The increase in demand establishes a profitable landscape for manufacturers and suppliers, enabling them to deliver innovative goods that address the changing requirements of enterprises and service providers.

Advancements in Transceiver Technology: Technological advances, including 400G and 800G transceivers, are pivotal catalysts for the Optical Transceiver Market. These technologies facilitate expedited and more efficient data transmission, corresponding with the increasing need for bandwidth-intensive applications. As businesses endeavor to secure their networks for the future, firms providing sophisticated transceiver solutions are poised to achieve a competitive advantage, facilitating ongoing market growth and enhanced income streams.

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High Initial Investment and Maintenance Costs: The Optical Transceiver Market encounters obstacles stemming from substantial initial investments and continuous maintenance expenses associated with optical networks. This may dissuade small and medium-sized firms from embracing these technologies, thereby hindering market adoption. Companies must prioritize the provision of cost-efficient solutions or adaptable pricing strategies to mitigate this constraint and realize market potential across various industry areas.

Compatibility Issues with Legacy Systems: As enterprises shift to contemporary optical networks, compatibility challenges with existing legacy systems continue to pose a significant barrier in the Optical Transceiver Market. Companies may encounter delays or heightened expenses when upgrading or integrating new equipment. This may hinder the swift adoption of optical transceivers, necessitating providers to provide solutions that facilitate seamless interaction with legacy infrastructure to reduce interruptions and leverage emerging opportunities.

Supply Chain Disruptions and Semiconductor Shortages: Global supply chain disruptions and persistent semiconductor shortages present a considerable challenge to the Optical Transceiver Market. Manufacturers encounter production delays and heightened component costs, affecting their capacity to satisfy escalating demand. To alleviate these risks, industry stakeholders must investigate alternate supply chains, enhance inventory management, and invest in novel production methodologies, thereby ensuring resilience and sustained growth in the long run.

Geographical Dominance

North America occupies a preeminent position in the Optical Transceiver Market owing to its sophisticated telecommunications infrastructure and swift integration of 5G and cloud technologies. The region’s substantial investment in data centers and research and development operations propels innovation, fostering market expansion. Moreover, the Asia-Pacific region is emerging as a high-growth area, characterized by rising demand from telecommunications operators and organizations, hence enhancing the global proliferation of optical transceivers.

Key Players

The “Global Optical Transceiver Market” study report will provide a valuable insight with an emphasis on the global market. The major players in the market are II-VI Incorporated, Accelink Technologies, Lumentum Operations LLC, Sumitomo Electric Industries Ltd., Fujitsu Optical Components Limited, Broadcom Inc.

Optical Transceiver Market Segment Analysis

Based on the research, Verified Market Research has segmented the global Optical Transceiver Market into Data Rate, Form Factor, Fiber Type, Distance, Wavelength, Connector, Protocol, Application and Geography.

Optical Transceiver Market, by Data Rate:Less than 10 Gbps10 to 40 Gbps41 to 100 GbpsMore than 100 GbpsOptical Transceiver Market, by Form Factor:SFF & SFPQSFPCFPXFPCFPOptical Transceiver Market, by Fiber Type:Single Mode FiberMultimode FiberOptical Transceiver Market, by Distance:Less than 1 km1-10 km11-100 kmMore than 100 kmOptical Transceiver Market, by Wavelength:850 nm band1310 nm band1550 nm bandOthersOptical Transceiver Market, by Connector:LC connectorSC connectorMPO connectorRJ-45Optical Transceiver Market, by Protocol:EthernetFiber ChannelCWDM/DWDMFTTxOther Protocols (SONET, SDH, CPRI)Optical Transceiver Market, by Application:Telecommunication (Ultra-long-haul Network, Long-haul Network, Metro Network)Data Center (Data Center Interconnect, Intra-Data Center Connection)Enterprise (Enterprise Routing, Enterprise Switching)Optical Transceiver Market, by GeographyNorth AmericaU.SCanadaMexicoEuropeGermanyFranceU.KRest of EuropeAsia PacificChinaJapanIndiaRest of Asia PacificROWMiddle East & AfricaLatin America

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5 Leading Optical Transceiver Manufacturers building a connected world

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