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CISCO REPORTS FIRST QUARTER EARNINGS

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SAN JOSE, Calif., Nov. 13, 2024 /PRNewswire/ — 

News Summary:

Broad-based acceleration in product orders reflecting normalizing demandProduct orders up 20% year over year; up 9% year over year excluding SplunkRevenue of $13.8 billion in Q1, at the high end of our guidance rangeStrong profitability:GAAP gross margin of 65.9% and non-GAAP gross margin of 69.3%, above our guidance rangeGAAP EPS of $0.68 and non-GAAP EPS of $0.91, above our guidance rangeQ1 FY 2025 Results:Revenue: $13.8 billionDecrease of 6% year over yearEarnings per Share: GAAP: $0.68; Non-GAAP: $0.91GAAP EPS decreased 24% year over yearNon-GAAP EPS decreased 18% year over yearQ2 FY 2025 Guidance:   Revenue: $13.75 billion to $13.95 billionEarnings per Share: GAAP: $0.51 to $0.56; Non-GAAP: $0.89 to $0.91FY 2025 Guidance:Revenue: $55.3 billion to $56.3 billionEarnings per Share: GAAP: $2.26 to $2.38; Non-GAAP: $3.60 to $3.66

Cisco today reported first quarter results for the period ended October 26, 2024. Cisco reported first quarter revenue of $13.8 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.7 billion or $0.68 per share, and non-GAAP net income of $3.7 billion or $0.91 per share.

“Cisco is off to a strong start to fiscal 2025,” said Chuck Robbins, chair and CEO of Cisco. “Our customers are investing in critical infrastructure to prepare for AI, and with the breadth of our portfolio, we are uniquely positioned to capitalize on this opportunity.”

“Revenue, gross margin and EPS in Q1 were at the high end or above our guidance range, generating strong operating leverage,” said Scott Herren, CFO of Cisco. “We are focused on solid execution and operating discipline while making strategic investments to drive innovation and growth.”

GAAP Results

Q1 FY 2025

Q1 FY 2024

Vs. Q1 FY 2024

Revenue

$              13.8 billion

$              14.7 billion

(6) %

Net Income

$               2.7  billion

$               3.6  billion

(25) %

Diluted Earnings per Share (EPS)

$                     0.68

$                     0.89

(24) %

Q1 FY 2025 GAAP results include a tax benefit of $720 million due to a recent U.S. Tax Court decision regarding the U.S. taxation of deemed foreign dividends in the transition year of the Tax Cuts and Jobs Act.

Non-GAAP Results

Q1 FY 2025

Q1 FY 2024

Vs. Q1 FY 2024

Net Income

$               3.7   billion

$               4.5   billion

(19) %

EPS

$                      0.91

$                      1.11

(18) %

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 January 22, 2025, to all stockholders of record as of the close of business on January 3, 2025. Future dividends will be subject to Board approval.

Financial Summary

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

Q1 FY 2025 Highlights

Revenue — Total revenue was $13.8 billion, down 6%, with product revenue down 9% and services revenue up 6%. Excluding the contribution from Splunk, total revenue was down 14%.

Revenue by geographic segment was: Americas down 9%, EMEA down 2%, and APJC up 1%. Product revenue performance reflected growth in Security up 100% and Observability up 36%. Networking was down 23% and Collaboration was down 3%. Excluding Splunk, Security and Observability grew 2% and 1%, respectively, in the first quarter of fiscal 2025.

Gross Margin — On a GAAP basis, total gross margin, product gross margin, and services gross margin were 65.9%, 65.1%, and 68.0%, respectively, as compared with 65.2%, 64.5%, and 67.3%, respectively, in the first quarter of fiscal 2024.

On a non-GAAP basis, total gross margin, product gross margin, and services gross margin were 69.3%, 68.9%, and 70.3%, respectively, as compared with 67.1%, 66.5%, and 69.0%, respectively, in the first quarter of fiscal 2024.

Total gross margins by geographic segment were: 69.6% for the Americas, 70.3% for EMEA and 66.4% for APJC.

Operating Expenses — On a GAAP basis, operating expenses were $6.8 billion, up 28%, and were 48.9% of revenue. Non-GAAP operating expenses were $4.9 billion, up 9%, and were 35.2% of revenue.

Operating Income — GAAP operating income was $2.4 billion, down 45%, with GAAP operating margin of 17.0%. Non-GAAP operating income was $4.7 billion, down 12%, with non-GAAP operating margin at 34.1%.

Provision for (benefit from) Income Taxes — The GAAP tax provision rate was a benefit of 19.6%, which includes the $720 million benefit on deemed foreign dividends as discussed above. The non-GAAP tax provision rate was 19.0%.

Net Income and EPS — On a GAAP basis, net income was $2.7 billion, a decrease of 25%, and EPS was $0.68, a decrease of 24%. On a non-GAAP basis, net income was $3.7 billion, a decrease of 19%, and EPS was $0.91, a decrease of 18%.

Cash Flow from Operating Activities — $3.7 billion for the first quarter of fiscal 2025, an increase of 54%, compared with $2.4 billion for the first quarter of fiscal 2024.

Balance Sheet and Other Financial Highlights

Cash and Cash Equivalents and Investments — $18.7 billion at the end of the first quarter of fiscal 2025, compared with $17.9 billion at the end of fiscal 2024.

Remaining Performance Obligations (RPO) — $40.0 billion, up 15% in total, with 51% of this amount to be recognized as revenue over the next 12 months. Product RPO were up 24% and services RPO were up 7%.

Deferred Revenue — $27.5 billion, up 7% in total, with deferred product revenue up 11%. Deferred services revenue was up 4%.

Capital Allocation — In the first quarter of fiscal 2025, 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 40 million shares of common stock under our stock repurchase program at an average price of $49.56 per share for an aggregate purchase price of $2.0 billion. The remaining authorized amount for stock repurchases under the program is $3.2 billion with no termination date.

Acquisitions

In the first quarter of fiscal 2025, we closed the following acquisitions:

DeepFactor, Inc., a privately held cloud-native application security companyRobust Intelligence, Inc., a privately held AI security solutions company

Guidance

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

Q2 FY 2025

Revenue

$13.75 billion – $13.95 billion

Non-GAAP gross margin

68% – 69%

Non-GAAP operating margin

33.5% – 34.5%

Non-GAAP EPS

$0.89 – $0.91

Cisco estimates that GAAP EPS will be $0.51 to $0.56 for the second quarter of fiscal 2025.

Cisco estimates the following results for fiscal 2025:

FY 2025

Revenue

$55.3 billion – $56.3 billion

Non-GAAP EPS

$3.60 – $3.66

Cisco estimates that GAAP EPS will be $2.26 to $2.38 for fiscal 2025.

Our Q2 FY 2025 guidance assumes an effective tax provision rate of approximately 17% for GAAP and approximately 19% for non-GAAP results. Our FY 2025 guidance assumes an effective tax provision rate of approximately 9% 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:

Q1 fiscal year 2025 conference call to discuss Cisco’s results along with its guidance will be held on Wednesday, November 13, 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, November 13, 2024 to 4:00 p.m. Pacific Time, November 19, 2024 at 1-866-360-7722 (United States) or 1-203-369-0174 (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, November 13, 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

October 26, 2024

October 28, 2023

REVENUE:

Product

$       10,114

$       11,139

Services

3,727

3,529

Total revenue

13,841

14,668

COST OF SALES:

Product

3,526

3,957

Services

1,194

1,154

Total cost of sales

4,720

5,111

GROSS MARGIN

9,121

9,557

OPERATING EXPENSES:

Research and development

2,286

1,913

Sales and marketing

2,752

2,506

General and administrative

795

672

Amortization of purchased intangible assets

265

67

Restructuring and other charges

665

123

Total operating expenses

6,763

5,281

OPERATING INCOME

2,358

4,276

Interest income

286

360

Interest expense

(418)

(111)

Other income (loss), net

41

(83)

Interest and other income (loss), net

(91)

166

INCOME BEFORE PROVISION FOR INCOME TAXES

2,267

4,442

Provision for (benefit from) income taxes

(444)

804

NET INCOME

$         2,711

$         3,638

Net income per share:

Basic

$           0.68

$           0.90

Diluted

$           0.68

$           0.89

Shares used in per-share calculation:

Basic

3,990

4,057

Diluted

4,013

4,087

 

CISCO SYSTEMS, INC.

REVENUE BY SEGMENT

(In millions, except percentages)

Three Months Ended

October 26, 2024

Amount

Y/Y %

Revenue:

Americas

$           8,252

(9) %

EMEA

3,588

(2) %

APJC

2,001

1 %

Total

$         13,841

(6) %

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

 

CISCO SYSTEMS, INC.

GROSS MARGIN PERCENTAGE BY SEGMENT

(In percentages)

Three Months Ended

October 26, 2024

Gross Margin Percentage:

Americas

69.6 %

EMEA

70.3 %

APJC

66.4 %

 

CISCO SYSTEMS, INC.

REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES

(In millions, except percentages)

Three Months Ended

October 26, 2024

Amount

Y/Y %

Revenue:

Networking

$           6,753

(23) %

Security

2,017

100 %

Collaboration

1,085

(3) %

Observability

258

36 %

Total Product

10,114

(9) %

Services

3,727

6 %

Total

$         13,841

(6) %

Excluding Splunk, Security and Observability grew 2% and 1%, respectively, in the first quarter of fiscal 2025.

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

 

CISCO SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

October 26, 2024

July 27, 2024

ASSETS

Current assets:

Cash and cash equivalents

$                9,065

$                7,508

Investments

9,606

10,346

Accounts receivable, net of allowance of $78 at October 26, 2024 and $87
at July 27, 2024

4,457

6,685

Inventories

3,143

3,373

Financing receivables, net

3,123

3,338

Other current assets

6,358

5,612

Total current assets

35,752

36,862

Property and equipment, net

2,082

2,090

Financing receivables, net

3,411

3,376

Goodwill

58,774

58,660

Purchased intangible assets, net

10,744

11,219

Deferred tax assets

6,514

6,262

Other assets

6,056

5,944

TOTAL ASSETS

$            123,333

$            124,413

LIABILITIES AND EQUITY

Current liabilities:

Short-term debt

$              12,364

$              11,341

Accounts payable

1,996

2,304

Income taxes payable

2,096

1,439

Accrued compensation

2,861

3,608

Deferred revenue

15,615

16,249

Other current liabilities

5,610

5,643

Total current liabilities

40,542

40,584

Long-term debt

19,623

19,621

Income taxes payable

3,367

3,985

Deferred revenue

11,887

12,226

Other long-term liabilities

2,637

2,540

Total liabilities

78,056

78,956

Total equity

45,277

45,457

TOTAL LIABILITIES AND EQUITY

$            123,333

$            124,413

 

CISCO SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

Three Months Ended

October 26,
2024

October 28,
2023

Cash flows from operating activities:

Net income

$              2,711

$              3,638

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

Depreciation, amortization, and other

789

401

Share-based compensation expense

827

661

Provision (benefit) for receivables

(1)

4

Deferred income taxes

(281)

(513)

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

(60)

89

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

Accounts receivable

2,227

979

Inventories

229

307

Financing receivables

173

25

Other assets

(190)

(290)

Accounts payable

(269)

(235)

Income taxes, net

(806)

(1,773)

Accrued compensation

(754)

(908)

Deferred revenue

(971)

259

Other liabilities

37

(273)

Net cash provided by operating activities

3,661

2,371

Cash flows from investing activities:

Purchases of investments

(1,775)

(1,850)

Proceeds from sales of investments

1,490

1,280

Proceeds from maturities of investments

1,164

2,497

Acquisitions, net of cash and cash equivalents acquired and divestitures

(217)

(876)

Purchases of investments in privately held companies

(42)

(13)

Return of investments in privately held companies

77

47

Acquisition of property and equipment

(217)

(134)

Other

(1)

1

Net cash provided by investing activities

479

952

Cash flows from financing activities:

Repurchases of common stock – repurchase program

(2,003)

(1,300)

Shares repurchased for tax withholdings on vesting of restricted stock units

(165)

(153)

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

68

Issuances of debt

5,732

Repayments of debt

(4,821)

(750)

Dividends paid

(1,592)

(1,580)

Other

(3)

(17)

Net cash used in financing activities

(2,784)

(3,800)

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

10

(45)

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

1,366

(522)

Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period

8,842

11,627

Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period

$           10,208

$           11,105

Supplemental cash flow information:

Cash paid for interest

$                 545

$                 128

Cash paid for income taxes, net

$                 643

$              3,090

 

CISCO SYSTEMS, INC.

REMAINING PERFORMANCE OBLIGATIONS

(In millions, except percentages)

October 26, 2024

July 27, 2024

October 28, 2023

Amount

Y/Y%

Amount

Y/Y%

Amount

Y/Y%

Product

$    19,882

24 %

$    20,055

27 %

$    16,011

14 %

Services

20,108

7 %

20,993

10 %

18,742

11 %

Total

$    39,990

15 %

$    41,048

18 %

$    34,753

12 %

We expect 51% of total RPO at October 26, 2024 will be recognized as revenue over the next 12 months.

 

CISCO SYSTEMS, INC.

DEFERRED REVENUE

(In millions)

October 26,
2024

July 27,
2024

October 28,

 2023

Deferred revenue:

Product

$       12,941

$       13,219

$       11,689

Services

14,561

15,256

13,970

Total

$       27,502

$       28,475

$       25,659

Reported as:

Current

$       15,615

$       16,249

$       13,812

Noncurrent

11,887

12,226

11,847

Total

$       27,502

$       28,475

$       25,659

 

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

Shares

Weighted-Average
Price per Share

Amount

Amount

Fiscal 2025

October 26, 2024

$             0.40

$          1,592

40

$          49.56

$          2,003

$          3,595

Fiscal 2024

July 27, 2024

$             0.40

$          1,606

43

$          46.80

$          2,002

$          3,608

April 27, 2024

$             0.40

$          1,615

26

$          49.22

$          1,256

$          2,871

January 27, 2024

$             0.39

$          1,583

25

$          49.54

$          1,254

$          2,837

October 28, 2023

$             0.39

$          1,580

23

$          54.53

$          1,252

$          2,832

 

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

 

GAAP TO NON-GAAP NET INCOME

(In millions)

Three Months Ended

October 26,
2024

October 28,
2023

GAAP net income

$           2,711

$           3,638

Adjustments to cost of sales:

Share-based compensation expense

131

103

Amortization of acquisition-related intangible assets

319

181

Acquisition/divestiture-related costs

19

Total adjustments to GAAP cost of sales

469

284

Adjustments to operating expenses:

Share-based compensation expense

679

550

Amortization of acquisition-related intangible assets

265

67

Acquisition/divestiture-related costs

285

75

Russia-Ukraine war costs

(2)

Significant asset impairments and restructurings

665

123

Total adjustments to GAAP operating expenses

1,894

813

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

(Gains) and losses on investments

(98)

51

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

(98)

51

Total adjustments to GAAP income before provision for income taxes

2,265

1,148

Income tax effect of non-GAAP adjustments

(476)

(258)

Significant tax matters (1)

(829)

Total adjustments to GAAP provision for income taxes

(1,305)

(258)

Non-GAAP net income

$           3,671

$           4,528

(1) The three months ended October 26, 2024 include a $720 million benefit due to a recent U.S. Tax Court decision regarding the U.S. taxation of deemed foreign dividends in the transition year of the Tax Cuts and Jobs Act.

 

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

 

GAAP TO NON-GAAP EPS

Three Months Ended

October 26,
2024

October 28,
2023

GAAP EPS

$              0.68

$             0.89

Adjustments to GAAP:

Share-based compensation expense

0.20

0.16

Amortization of acquisition-related intangible assets

0.15

0.06

Acquisition/divestiture-related costs

0.08

0.02

Significant asset impairments and restructurings

0.17

0.03

(Gains) and losses on investments

(0.02)

0.01

Income tax effect of non-GAAP adjustments

(0.12)

(0.06)

Significant tax matters

(0.21)

Non-GAAP EPS

$              0.91

$             1.11

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

October 26, 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

$ 6,588

$ 2,533

$ 9,121

$ 6,763

28 %

$ 2,358

(45) %

$   (91)

$ 2,711

(25) %

% of revenue

65.1 %

68.0 %

65.9 %

48.9 %

17.0 %

(0.7) %

19.6 %

Adjustments to GAAP amounts:

Share-based compensation expense

57

74

131

679

810

810

Amortization of acquisition-related intangible assets

319

319

265

584

584

Acquisition/divestiture-related costs

5

14

19

285

304

304

Significant asset impairments and restructurings

665

665

665

(Gains) and losses on investments

(98)

(98)

Income tax effect/significant tax matters

(1,305)

Non-GAAP amount

$ 6,969

$ 2,621

$ 9,590

$ 4,869

9 %

$ 4,721

(12) %

$ (189)

$ 3,671

(19) %

% of revenue

68.9 %

70.3 %

69.3 %

35.2 %

34.1 %

(1.4) %

26.5 %

               

Three Months Ended

October 28, 2023

Product
Gross
Margin

Services

Gross

Margin

Total

Gross

Margin

Operating

Expenses

Operating

Income

Interest and

other income

 (loss), net

Net

Income

GAAP amount

$   7,182

$   2,375

$   9,557

$   5,281

$   4,276

$      166

$   3,638

% of revenue

64.5 %

67.3 %

65.2 %

36.0 %

29.2 %

1.1 %

24.8 %

Adjustments to GAAP amounts:

Share-based compensation expense

42

61

103

550

653

653

Amortization of acquisition-related intangible assets

181

181

67

248

248

Acquisition/divestiture-related costs

75

75

75

Significant asset impairments and restructurings

123

123

123

Russia-Ukraine war costs

(2)

(2)

(2)

(Gains) and losses on investments

51

51

Income tax effect/significant tax matters

(258)

Non-GAAP amount

$   7,405

$   2,436

$   9,841

$   4,468

$   5,373

$      217

$   4,528

% of revenue

66.5 %

69.0 %

67.1 %

30.5 %

36.6 %

1.5 %

30.9 %

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

October 26, 2024

October 28, 2023

GAAP effective tax rate

(19.6) %

18.1 %

Total adjustments to GAAP provision for income taxes

38.6 %

0.9 %

Non-GAAP effective tax rate

19.0 %

19.0 %

 

GAAP TO NON-GAAP GUIDANCE

Q2 FY 2025

Gross Margin
Rate

Operating Margin

 Rate

Earnings per
Share (1)

GAAP

64.5% – 65.5%

20% – 21%

$0.51 – $0.56

Estimated adjustments for:

Share-based compensation expense

1.0 %

7.0 %

$0.18 – $0.19

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

2.5 %

6.0 %

$0.16 – $0.17

Significant asset impairments and restructurings

0.5 %

$0.01 – $0.02

Non-GAAP

68% – 69%

33.5% – 34.5%

$0.89 – $0.91

 

FY 2025

Earnings per

 Share (1)

GAAP

$2.26 – $2.38

Estimated adjustments for:

Share-based compensation expense

$0.73 – $0.75

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

$0.60 – $0.62

Significant asset impairments and restructurings

$0.18 – $0.20

(Gains) and losses on investments

($0.02)

Significant tax matters

($0.21)

Non-GAAP

$3.60– $3.66

(1) 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, 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’ investments in critical infrastructure to prepare for AI, our position to capitalize on that opportunity given the breadth of our portfolio, and our focus on solid execution and operating discipline while making strategic investments to drive innovation and growth) and the future financial performance of Cisco (including the guidance for Q2 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 key priority 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 report on Form 10-K filed on September 5, 2024. 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 report on Form 10-K as it may be amended from time to time. Cisco’s results of operations for the three months ended October 26, 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/divestiture-related costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies, RussiaUkraine 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.

RSS Feed for Cisco: https://newsroom.cisco.com/rss-feeds

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Marvion Inc. Subsidiary Signs Agreement with Engineering Firm for Construction of New State-of-the-Art Warehouse Facility

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HONG KONG, Nov. 14, 2024 /PRNewswire/ — Marvion Inc. (OTC: MVNC) is pleased to announce that its subsidiary United Warehouse Management Limited has officially signed a quotation agreement with Star Warehouse Engineering Limited for the construction of a new, state-of-the-art warehouse facility. The new warehouse will be strategically located to support the company’s growing logistics and storage operations, underscoring MVNC’s commitment to scaling up its infrastructure to meet the increasing market demand.

The new warehouse will feature two floors, each spanning 18,000 square feet, for a total floor area of 36,000 square feet. This expansion is set to enhance MVNC’s storage capabilities, streamline supply chain efficiency, and optimize logistics operations to better serve its expanding customer base.

Strategic Infrastructure Investment to Drive Long-Term Growth

This significant investment marks a crucial step in MVNC’s long-term strategic plan to solidify its position as a leader in the logistics and storage services sector. The new warehouse will not only bolster the company’s existing storage capacity but also enable the integration of advanced logistics and storage technologies. The facility will be equipped with modern automated systems with artificial intelligence engine to support high-volume inventory management and faster turnaround times, further strengthening MVNC’s competitive advantage in the region.

Commenting on this milestone, Mr. Chan Sze Yu, CEO of Marvion Inc., said:
“This new warehouse is a testament to our commitment to expanding our infrastructure to meet the ever-growing demand in the logistics industry. By investing in this state-of-the-art facility, we are positioning Marvion to better serve our clients and seize emerging opportunities in the market. This project will not only enhance our operational efficiency but also increase our capacity to support strategic partners like FedEx, SF Express, and other key clients.”

Supporting Sustainable Growth in the Asia-Pacific Region

Aligned with MVNC’s sustainability goals, the new facility will incorporate environmentally friendly design elements, such as energy-efficient lighting systems and optimized insulation to reduce energy consumption. These initiatives underscore MVNC’s dedication to promoting sustainable business practices while driving growth.

The construction is scheduled to begin in Q4 2024, with completion expected by the end Q2 2025. The new facility is projected to generate significant operational synergies, contributing to the company’s continued revenue growth and profitability.

About Marvion Inc.

Marvion Inc. (OTC: MVNC) is a leading logistics and warehousing solutions provider based in Hong Kong. The company specializes in offering one-stop transport and storage services to business clients, leveraging advanced digital technologies and efficient inventory management systems.

Company Website: www.unitedksk.com

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American Liver Foundation Hosts the 33rd Annual Irwin M. Arias Symposium

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Virtual and in-person event, Bridging Basic Science and Liver Disease, brings together hundreds of leading biomedical scientists and physicians from across the globe 

FAIRFIELD, N.J., Nov. 14, 2024 /PRNewswire/ — American Liver Foundation is excited to host its 33rd annual Irwin M. Arias Symposium, Bridging Basic Science and Liver Disease, on Wednesday, November 20th from 9AM to 5PM ET. Hundreds of leading biomedical scientists and physicians around the world will come together for this prestigious hybrid, in-person and virtual, one-day event. Each presentation highlights remarkable scientific advances in basic biology and engineering while also providing cutting edge research for a better understanding of liver diseases and the best treatment options available today.

Bridging Basic Science & Liver Disease brings together leading biomedical scientists and physicians from across globe

This informative symposium features 10 unique plenary talks from renowned researchers such as Presidential Medal of Freedom recipient and physician-geneticist Francis S. Collins, MD, PhD, who led the Human Genome Project and discovered the genes causing several genetic diseases. He also served under three Presidents as the Director of the U.S. National Institutes of Health (NIH), the largest supporter of biomedical research in the world. He is currently leading a bold effort to eradicate Hepatitis C throughout the United States. Anne Carpenter, PhD, is the Senior Director of the Imaging Platform and an Institute Scientist at the Broad Institute of MIT and Harvard. She was included on the Top 100 list of AI leaders for her team’s open-source CellProfiler software that is used by thousands of biologists worldwide and their Cell Painting assay that has been adopted throughout the pharma industry to accelerate drug discoveries. There will also be a collection of three-minute ‘MicroTalks’ delivered by trainee scientists.

“This unique one-day annual symposium is a must-attend event for scientists interested in exploring innovative, groundbreaking research conducted in labs and the therapeutic treatments eventually delivered in clinics across the country,” said Lorraine Stiehl, CEO, American Liver Foundation. “Over the past 33 years, research presented at this event has led to many advances in the diagnosis and treatment of virtually all liver diseases in children and adults. Dr. Irwin M. Arias, recognized throughout the world, has devoted his life’s work to advancing liver disease research, treatments and cures and we’re so grateful for his expertise. Liver patients everywhere have benefited from his preeminent work.”

Symposium co-chairs include Sangeeta Bhatia, MD, PhD, John J. and Dorothy Wilson Professor, Electrical Engineering and Computer Science and Institute of Medical Engineering and Science Department at MIT, and Wolfram Goessling, MD, PhD, Chief of Gastroenterology at Massachusetts General Hospital, Director of the Harvard-MIT Health Sciences & Technology at Harvard Medical School and a Professor of Medicine at Harvard Medical School. The overall programming has been designed to honor Dr. Arias’ founding commitment to ‘bridging’ the gap between the academic, industrial, and clinical research communities – even across disciplines.

“The burden of chronic liver diseases affects over 100 million people in the United States alone and is rapidly becoming a public health crisis,” said Dr. Goessling, Chief of Gastroenterology at Massachusetts General Hospital. “Unfortunately, we currently lack effective tools for prevention, diagnosis and treatment for many liver conditions, so it’s vitally important to connect basic science research with the ongoing needs prevalent in many clinics and the Arias Symposium provides this opportunity.”

“Significant gaps remain in the understanding of many liver diseases and the fundamental systems involved in normal and pathological liver function,” said Dr. Bhatia, John J. and Dorothy Wilson Professor at MIT’s Institute of Medical Engineering and Science Department. “This scientific conference bridges basic science and liver disease while also nurturing successful careers in basic and translational liver research. The Arias Symposium allows us all to come together to share our research, encourage new trainees to learn more about liver disease and offers everyone one-day to learn what’s new and engaging in the world of liver research and science.”

The symposium is open to researchers at every stage of their careers, and they are encouraged to share perspectives from their academic, industrial, and clinical research settings. In-person attendees will benefit from a poster session and networking opportunities with plenary speakers and other attendees. Breakfast, lunch, and a networking reception will also be provided to in-person attendees. Registration is free for all trainees (postdocs, fellows, grads, students, undergrads, etc.). Registration is $50 for in-person attendees other than trainees. Virtual attendance is free but does require registration. Register here for this informative event.

This one-day virtual program will include topics such as:  

It’s Time to Eliminate Hepatitis C in the U.S. Francis Collins, MD, PhD – National Institutes of Health (VIRTUAL)Post-Transplant Alloimmune Hepatitis – What do we know and What’s New Udeme Ekong, MD, MPH, FAASLD – Georgetown University Detecting Liver Phenotypes and Toxicity Using Cell Image Data Anne Carpenter, PhD – Broad Institute of MIT and HarvardSpatial Clonal Tracing in Solid Tissues Fernando Camargo, PhD – Massachusetts Institute of TechnologyHolistic Multi-Scale Molecular Imaging of Human Organs Kwanghun Chung, PhD – Boston Children’s HospitalCell Identity Conversion – Liver Regeneration and Cell Therapy Lijian Hui, PhD – Shanghai Institutes for Biological SciencesDeveloping Cirrhosis Therapies: The Three Grand Challenges Quin Wills, MD, PhD – Ochre BioPediatric Liver Tumors: Clinical Context and Opportunities for Collaboration Allison O’Neill, MD – Dana-Farber Cancer InstituteUnderstanding How the Organism Monitors Liver Sufficiency to Properly Time RegenerationKristin Knouse, MD, PhD – Massachusetts Institute of TechnologyCellular and Molecular Drivers of Liver Cancer Response to ImmunotherapyMiriam Merad, MD, PhD – Mount Sinai School of Medicine

For the full agenda, list of speakers, and registration, please visit alfevents.org/ariassymposium.  

In addition to the Arias Symposium, American Liver Foundation offers a research awards program in three categories, Liver Scholar Award, Postdoctoral Research Fellowship Award, and Pilot Research Awards that recently funded eight highly innovative projects into these rare diseases – PSC, AIH and BA. Since 1979, ALF’s research awards program has provided more than $28 million in research funding. Over 850 qualified scientists and physicians have pursued research careers in liver biology, disease and treatment because they received these grants early in their careers. Learn more at liverfoundation.org/research.

About the American Liver Foundation
American Liver Foundation (ALF) is a national community of patients, caregivers and medical professionals dedicated to helping people improve their liver health. Providing guidance and life-saving resources, we are a beacon for the 100 million Americans affected by liver disease. We advocate for patients and families, fund medical research and educate the public about liver wellness and disease prevention. We bring people together through our educational programs and events and create a network of support that lasts a lifetime. ALF is the largest organization focused on all liver diseases and the trusted voice for patients and families living with liver disease. For more information visit www.liverfoundation.org or call: 1 800 GO LIVER (800-465-4837).

Media Contacts:                   
Julie Kimbrough
JKimbrough@liverfoundation.org              
Direct dial: 646-737-9409   
Karla Thomas     
Direct dial: 773.575.9477        

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SOURCE American Liver Foundation

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Avantor® Opens New Bridgewater Innovation Center Focused on Solving Life Science’s Biggest Challenges

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RADNOR, Pa., Nov. 14, 2024 /PRNewswire/ — Avantor, Inc. (NYSE: AVTR), a leading global provider of mission-critical products and services to customers in the life sciences and advanced technology industries, today announced the opening of its new flagship Bridgewater Innovation Center. The state-of-the-art research and development facility, located in Bridgewater, NJ, is part of Avantor’s network of 13 research and innovation centers across the globe.

Avantor’s new Bridgewater Innovation Center spans 60,000 square feet, doubling its previous laboratory and pilot plant capacity. Purpose-designed for collaborative work, the center houses spaces for upstream and downstream process development, dedicated analytical testing labs, and a viral vector laboratory. An expanded pilot plant supports scale-up simulations, enabling rapid customization across the entire bioprocessing workflow.

“Our new Bridgewater Innovation Center is twice the size of our previous facility and adds capacity, talent and capabilities to support the growing demands for monoclonal antibodies, cell and gene therapy and mRNA workflows,” said Michael Stubblefield, President and CEO of Avantor. “Working side-by-side with customers in our network of innovation centers across the globe enables us to power science at every step to deliver life-changing therapies faster, and more cost effectively.”

The Bridgewater Innovation Center allows Avantor to optimize and accelerate biomanufacturing processes at scale; resulting in faster problem solving, streamlined knowledge exchange, and strategic co-innovation. Staffed with Ph.D. scientists, bioengineers, biologists, and process engineers, this center enhances both capacity and expertise to support customers’ needs. The facility also supports Avantor’s sustainability goals, reinforcing the Company’s commitment to environmental responsibility.

For more information about the Bridgewater Innovation Center, visit: https://www.avantorsciences.com/us/en/about/innovation-in-biopharma/avantor-bridgewater-innovation-center

About Avantor
Avantor® is a leading life science tools company and global provider of mission-critical products and services to the life sciences and advanced technology industries. We work side-by-side with customers at every step of the scientific journey to enable breakthroughs in medicine, healthcare, and technology. Our portfolio is used in virtually every stage of the most important research, development and production activities at more than 300,000 customer locations in 180 countries. For more information, visit avantorsciences.com and find us on LinkedInX (Twitter) and Facebook.

Global Media Contact
Eric Van Zanten
Head of External Communications
Avantor
610-529-6219
Eric.VanZanten@avantorsciences.com

Investor Relations Contact
Christina Jones
Vice President, Investor Relations
Avantor
805-617-5297
Christina.Jones@avantorsciences.com

 

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