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Wednesday, June 28, 2017

Cisco Live 2017: Key Takeaways from CEO Chuck Robbins Keynote

Cisco Live Conference, June 26, 2017

Cisco kicked off this year's Live conference with a keynote from its CEO Chuck Robbins, who walked attendees through recent and upcoming news announcements while laying out the company's vision for next-generation networks. Here's a look at the key takeaways from Robbins' talk.

The new networking realities: In 2016, the world hit an inflection point as the number of machine-to-machine network activations exceeded those of phones and tablets, Robbins said. Enterprises are already using billions of connected devices for new business models, preventive maintenance and other pursuits, and the pace by which more and more devices will be connected to the Internet is set to increase dramatically, he added.

Three things will define networks going forward: scale, simplification and security, Robbins said. Of the last, he noted: "We all know what's in the press and as we add more and more things the threat surface expands. Once a month, something major happens. We have to ensure we're building security into everything we do."

Cisco Live 2017 Opening Keynote with Cisco CEO Chuck Robbins. Live from Las Vegas. Includes guest appearances by Apple CEO Tim Cook and UnitedHealth Group CEO David Wichmann.

Read more at the ZDNET website!

About Cisco Systems

Cisco (NASDAQ: CSCO) is the worldwide technology leader that has been making the Internet work since 1984. Our people, products and partners help society securely connect and seize tomorrow's digital opportunity today. Discover more at thenetwork.cisco.com and follow us on Twitter at @Cisco.

Friday, June 23, 2017

Cisco Unveils Network of the Future That Can Learn, Adapt, Evolve

Designed to be intuitive, Cisco's new network can recognize intent, mitigate threats through encryption, and learn over time, unlocking opportunities and enhancing business agility

SAN FRANCISCO, CA -- (Marketwired) -- 06/20/17 -- Today Cisco (NASDAQ: CSCO) unveiled intent-based networking solutions that represent one of the most significant breakthroughs in enterprise networking. The introduction is the culmination of Cisco's vision to create an intuitive system that anticipates actions, stops security threats in their tracks, and continues to evolve and learn. It will help businesses to unlock new opportunities and solve previously unsolvable challenges in an era of increasing connectivity and distributed technology.

This new network is the result of years of research and development by Cisco to reinvent networking for an age where network engineers managing hundreds of devices today will be expected to manage 1 million by 2020.

"The network has never been more critical to business success, but it's also never been under more pressure," said Chuck Robbins, chief executive officer for Cisco. "By building a more intuitive network, we are creating an intelligent platform with unmatched security for today and for the future that propels businesses forward and creates new opportunities for people and organizations everywhere."

Read more at the Cisco website!

About Cisco Systems

Cisco (NASDAQ: CSCO) is the worldwide technology leader that has been making the Internet work since 1984. Our people, products and partners help society securely connect and seize tomorrow's digital opportunity today. Discover more at thenetwork.cisco.com and follow us on Twitter at @Cisco.

Thursday, June 8, 2017

Cisco Visual Networking Index Predicts Global Annual IP Traffic to Exceed Three Zettabytes by 2021

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IoT applications will represent more than 50 Percent of global devices and connections by 2021

Cisco Visual Networking Index Predicts Global Annual IP Traffic to Exceed Three Zettabytes by 2021

Summary

SAN JOSE, CA -- (Marketwired) -- 06/08/17 -- Cisco (NASDAQ: CSCO) -- Over the next five years (2016 - 2021), global digital transformation will continue to have a significant impact on the demands and requirements of IP networks according to today's release of the Cisco Visual Networking Index™ (VNI) Complete Forecast. Top-level indicators include the projected increase in Internet users -- from 3.3 to 4.6 billion or 58 percent of the global population1, greater adoption of personal devices and machine-to-machine (M2M) connections -- from 17.1 billion to 27.1 billion from 2016 - 2021, average broadband speed advances -- from 27.5 Mbps to 53.0 Mbps, and more video viewing -- from 73 percent to 82 percent of total IP traffic. Over the forecast period, global IP traffic is expected to increase three-fold reaching an annual run rate of 3.3 zettabytes by 2021, up from an annual run rate of 1.2 zettabytes in 2016.

For the first time in the 12 years of the forecast, M2M connections that support Internet of Things (IoT) applications are calculated to be more than half of the total 27.1 billion devices and connections and will account for five percent of global IP traffic by 2021. IoT innovations in connected home, connected healthcare, smart cars/transportation and a host of other next-generation M2M services are driving this incremental growth -- a 2.4-fold increase from 5.8 billion in 2016 to 13.7 billion by 2021. With the rise of connected applications such as health monitors, medicine dispensers, and first-responder connectivity, the health vertical will be fastest-growing industry segment (30 percent CAGR). The connected car and connected cities applications will have the second-fastest growth (29 percent CAGRs respectively).

Video will continue to dominate IP traffic and overall Internet traffic growth -- representing 80 percent of all Internet traffic by 2021, up from 67 percent in 2016. Globally, there will be nearly 1.9 billion Internet video users (excluding mobile-only) by 2021, up from 1.4 billion in 2016. The world will reach three trillion Internet video minutes per month by 2021, which is five million years of video per month, or about one million video minutes every second.x

Read more at the Cisco website!

About Cisco Systems

Cisco (NASDAQ: CSCO) is the worldwide technology leader that has been making the Internet work since 1984. Our people, products and partners help society securely connect and seize tomorrow's digital opportunity today. Discover more at thenetwork.cisco.com and follow us on Twitter at @Cisco.

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Thursday, May 18, 2017

Cisco Earnings Report: An Uncertain Future

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Cisco Systems reported QE April 2017 financial results on May 17

Cisco Earnings Report: An Uncertain Future

Summary

Cisco quarterly revenues failed to reach $12 billion and were down -0.5% YoY. Earnings per share were a surprisingly higher $0.60 and up +5.3% YoY.
Cisco stock has pulled back from a March 1 multi-year closing high and May retests prior to the earnings report.
Cisco’s Business Outlook for the next quarter is disappointing, forecasting both declining revenues and earnings per share YoY.

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Monday, May 15, 2017

Cisco Earnings Expected To Plod Along

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Cisco Systems reports QE April 2017 financial results on May 17

Cisco Earnings Expected To Plod Along

Summary

Cisco earnings will be reported this week and are expected to be a small improvement both YoY and QoQ.
Cisco stock has pulled back from a March 1 multi-year high and May 5 retest prior to the earnings report.
Revenues have been cyclical and flat overall for several years. Non-GAAP earnings per share have been in a slowing uptrend.

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Tuesday, February 26, 2013

Cisco Acquisition of Intucell Completed

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Cisco reported QE January 2013 financial results on February 13

Cisco Completes Acquisition of Intucell

SAN JOSE, CA -- (Marketwire) -- 02/25/13 -- Cisco (NASDAQ: CSCO) today announced it has completed its acquisition of privately held Intucell, based in Ra'anana, Israel. Intucell provides advanced self-optimizing network (SON) software, which enables mobile carriers to plan, configure, manage, optimize and heal cellular networks automatically, according to real-time changing network demands. The acquisition of Intucell enhances Cisco's commitment to global service providers by adding a critical network intelligence layer to manage and optimize spectrum, coverage and capacity, and ultimately the quality of the mobile experience.

With the evolution of LTE 4G networks, mobile operators are increasingly looking for a more cost effective and efficient way to keep up with demand for bandwidth and reduce complexity. Intucell enhances Cisco's ability to deliver next-generation solutions with a SON software platform that supports multi-application, multi-vendor and multi-technology capabilities and enables service providers to manage operational costs and make better use of infrastructure investments.

Intucell employees will be integrated into Cisco's Service Provider Mobility Group. Under the terms of the agreement, Cisco paid approximately $475 million in cash and retention-based incentives to acquire the entire business and operations of Intucell.

About Cisco

Cisco (NASDAQ: CSCO) is the worldwide leader in networking that transforms how people connect, communicate and collaborate. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com.

Press Release: VMware Named to MIT Technology Review’s 2013 50 Disruptive Companies List Recognizing World’s Most Innovative Companies

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Thursday, February 14, 2013

Cisco Earnings Beat

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Cisco reported QE January 2013 financial results on February 13

Cisco Earnings Beat: This Is How We Roll

Networking leader Cisco (CSCO) reported a record quarter for total revenues ($12.1 billion), operating income ($2.8 billion), net income ($3.1 billion), GAAP earnings per share ($0.59), Non-GAAP earnings per share ($0.51), and cash flow from operations per share ($0.63) for the quarter ending January 2013. CEO John Chambers has led Cisco back from the dismal 2011 financial lows. This was considered a very small beat of $38 million on revenues and a beat of $0.03 on Non-GAAP earnings per share. After reviewing the quarterly report, I consider the results an outlier - encouraging with several qualifications. Read more and see the charts at Seeking Alpha.

About Cisco Cisco (NASDAQ: CSCO) is the worldwide leader in networking that transforms how people connect, communicate and collaborate. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com.

$CSCO $XLK $QQQ

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Tuesday, February 12, 2013

Cisco Earnings Preview: Slow Growth Continues

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Cisco reports QE January 2013 financial results on February 13

Cisco Earnings Preview: Lumbering Along

Networking leader Cisco (CSCO) reports quarter ending January 2013 earnings on Wednesday, February 13, after market close. CEO John Chambers is expected to deliver investors another slow-growth quarter for both revenues and earnings per share. Cisco is a tech giant with $90+ billion in total assets, $10+ billion in quarterly revenues, and 70,000+ employees. The Board gives back to shareholders via dividends and a stock repurchase program. Read more and see the charts at Seeking Alpha.

$CSCO $XLK $QQQ

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Monday, October 8, 2012

Largest USA Tech Companies Earnings Soften: Apple Dominates, HP Plunges

This is the technology sector reported financial performance going into the October earnings season.

Quarterly Net Income

The Largest USA Tech Companies have reported quarterly aggregate net income of $14.8 billion, which is lower than the prior quarter $35.6 billion. This is a sequential QoQ decrease of -$20.8 billion and -58%! What happened? HP reported an epic quarterly net loss of -$8.9 billion, which offset the Apple quarterly net income of +$8.8 billion. Microsoft reported a rare quarterly net loss of -$492 million. Eight of the eleven companies reviewed reported a QoQ decrease in net income.

A net decrease is not unusual or unexpected as summer is typically a slower financial performance on an annual cyclical basis for the tech sector. But the huge HP and extraordinary Microsoft net losses created a plunge. The only three sequential QoQ increases were IBM (+$816 million) and Intel (+$89 million) and EMC (+$63 million).

For the latest quarters reported, Apple continues dominating with an incredible $8.82 billion quarterly net income. Second was IBM at $3.88 billion, third was Intel at $2.83 billion, and fourth was Google with $2.79 billion. Apple earned more than #2 IBM and #3 Intel combined.

The rest of the pack follows with #5 Oracle at $2.03 billion, #6 Cisco at $1.92 billion, #7 Qualcomm at $1.02 billion rounding out the Billion Dollar Club. Trailing are #8 EMC at $689 million and #9 Amazon at a mere $7 million. Further behind are #10 Microsoft at a dismal net loss of -$492 million and #11 HP with the aforementioned epic loss of -$8.86 billion. Apple comprises approximately 60% of the total quarterly net income of the 10 tech companies listed!

Return on Assets

The Largest USA Tech Companies have reported an average return on assets of +12.29%, a multi-quarter low and -1.68% decrease from the prior quarter. Seven of the eleven companies reviewed reported decreases. The largest sequential QoQ decreases were HP (-8.564%), Microsoft (-6.42%), and Apple (-2.08%). The only significant sequential QoQ increase was Cisco (+0.65).

For the latest quarters reported, Best of Breed goes to Apple with a commanding and incredible lead of at +29.70% ROA. Apple is distantly followed by Intel (+17.61%), Qualcomm (+15.26%), and Google (+15.02%), and Microsoft (+14.95%). Next are #6 IBM (+14.30%), and #7 Oracle (+13.53%).

Significantly lagging the field are #8 Cisco at +9.01% and #9 EMC at +8.42%. Amazon is #10 and a much lower +1.82%. Finally, HP is last and #11 at a negative -4.44%.

I have included Amazon because of the Kindle Fire, streaming, cloud services, and the resulting competition with others listed.

Status Updated through Oracle quarterly financial results reported 9-20-12
Next reports: October earnings season

$XLK $QQQ $AAPL $AMZN $CSCO $EMC $GOOG $HPQ $IBM $INTC $MSFT $ORCL $QCOM

Sunday, September 30, 2012

Big Tech Assets Rise, Apple Reaches Record $163 Billion

This is the technology sector reported financial position going into the October earnings season.

Total Assets

The Largest USA Tech Companies have reported all-time high aggregate total assets of $940 billion. This is a net increase of +$14 billion and +1.6% from the prior quarter. Apple led the way, and continues pulling away, with another incredible +$11.9 billion quarterly increase, followed by Google (+$8.9 billion), and Microsoft (+$3.3 billion). A huge decrease was reported by HP (-$10.1 billion), followed by Oracle (-$1.8 billion), and IBM (-$1.5 billion).

The $100 Billion Club: For the latest quarter reported, Apple continues #1 and largest at $162.9 billion. Microsoft moved up to #2 at $121.3 billion while HP slipped to third at $117.6 billion. IBM continues at #4 with $113.8 billion. Cisco is #5 at $91.8 billion.

The next group is #6 Google at $86.1 billion, #7 Oracle ($76.6 billion), and #8 Intel ($72.4 billion). Qualcomm and EMC are a more distance #9 and #10 at $42.4 billion and $35.0 billion, respectively. Amazon is last and #11 at $21.0 billion. I have included Amazon because of the Kindle Fire, streaming, cloud services, and the resulting competition with others listed.

Capital Ratio

The Largest USA Tech Companies have reported an average capital to assets ratio of 54.53%, a slight decrease of -0.85% from the prior quarter. Six of the eleven companies reviewed reported increases, led by Intel (+2.3%) and followed by EMC (+0.85%) and Oracle (+0.84%). Google and Microsoft reported the largest decreases at -4.79% and -3.46%, respectively.

For the latest quarters reported, Qualcomm (77%) continues leading Google (75%) to have the strongest capital position. Apple is #3 at 69%, followed closely by Intel at 67%. Next are EMC, Cisco, Oracle, and Microsoft at 63%, 57%, 56%, and 55%, respectively. Amazon is 9th at 36%, followed by HP (27%) and finally IBM (18%) is last and #11.

Status
Updated through Oracle quarterly financial results reported 9-20-12
Next reports: October earnings season

Earnings Reviews

$XLK $QQQ $AAPL $AMZN $CSCO $EMC $GOOG $HPQ $IBM $INTC $MSFT $ORCL $QCOM

Sunday, September 9, 2012

Big Tech Profits Soften: HP, Microsoft, Amazon Plunge!

Net Income: Quarter over Quarter Change

The Largest USA Tech Companies reported softening profits from the prior quarter, which is not unusual this time of year on an annual cyclical basis. Only 3 of the 10 companies reviewed reported sequential quarterly increases (Oracle, IBM, Intel).

First, HP is not included in the chart below. HP, which is among the walking wounded, reported a disastrous quarter and a chart-busting -656% decrease in net income QoQ. HP reported a net loss of -$8.86 billion for their latest quarter, compared to net income of +$1.59 billion in the prior quarter. Including HP skews the chart and obscures the data.

Reporting net income increases quarter over quarter were Oracle (+38%), IBM (+27%), and Intel (+3%). Reporting a decrease in net income from the prior quarter were Google (-4%), Cisco (-11%), Apple (-24%), and Qualcomm (-46%). The Big Losers were Amazon (-95%), Microsoft (-110%), and the aforementioned HP (-656%). The second calendar quarter is typically slower and a quarterly drop for many tech companies in total revenues, net income, and earnings per share.

Net Income: Year over Year Change

The Largest USA Tech Companies reported more positive results from the prior year, compared to the prior quarter. 6 of the 10 companies reviewed reported YoY increases. Cisco (+56%) and Apple (+21%) led the way, followed by Qualcomm (+17%), Google (+11%), Oracle (+8%), and IBM (+6%). The remainder lost ground and some lost huge territory. Intel (-4%), Amazon (-96%), Microsoft (-108%), and HP (-560%) reported decreases year over year.

HP is not included in the chart below. Including HP skews the chart and obscures the data.

Updated through HP quarterly financial results reported 8-22-12
Next reporting: Oracle in September

Big Tech Assets Rise, Apple Reaches Record $163 Billion

Largest USA Tech Companies Earnings Plunge, But Apple Still Dominates

$XLK $QQQ $AAPL $AMZN $CSCO $GOOG $HPQ $IBM $INTC $MSFT $ORCL $QCOM

Saturday, September 8, 2012

Cisco Earnings Review: Strong Financial Rebound!

Cisco reported QE July 2012 financial results on August 15

CEO John Chambers has navigated Cisco above the financial performance lows of 2011 and this QE July was strong. Chambers has restructured, cut costs, increased dividends, continues stock repurchasing, and has achieved better bottom line results. In fact, this was the best QE July ever reported by Cisco. This is especially encouraging considering this is also typically the weakest quarter on an annual cyclical basis.

Current year on year revenues growth was a somewhat light +4.4%, compared to the recent average of about 6%. The historically volatile YoY earnings per share growth was a very impressive +64%. The prior two quarters have also been solid for YoY EPS at +21% and +48%.

The only real negative was a lower gross margin of 60.61%, a 6-quarter low. This prevented the QE July from being a surprising home run instead of a double off the wall. However, Cisco has rebounded significantly in the past year as evidenced by this being the primary criticism.

GAAP Financial Result, QoQ Change, YoY Change
Total Assets: $91.76 billion, +1%, +5%
Total Revenues: $11.69 billion, +1%, +4%
Net Income: $1.92 billion, -11%, +56%
Earnings per Share: $0.36, -10%, +64%
Cash Flow per Share $0.58
1-Year Return on Assets +9.01%

Cisco Outlook QE October 2012 The guidance is slightly weak QoQ but relatively strong YoY. Revenues continue to slowly grind higher. The QE October earnings per share should normally be a stronger rebound QoQ than forecast by management.
Non-GAAP Earnings per Share: $0.45 to $0.47
Prior Quarter: $0.47
Prior Year: $0.43
Revenues YoY: +2% to +4%

"As a result of our strong performance, continued execution on our plan to deliver profitable growth, and commitment to shareholders, for the full fiscal year, we delivered revenue growth of 7% as well as a record year in revenue and earnings per share," stated Cisco Chairman and CEO John Chambers.

"Our strategy -- delivering intelligent networks and technology architectures, built on integrated products, services and software platforms, to fuel our customers' businesses -- is proving the right long-term strategy for our success. There is no question that our industry and our world are evolving quickly and Cisco is squarely at the center of major technology market transitions -- cloud, mobile, visual, virtual and social."

Chambers Explains Cisco's Earnings John Chambers, Cisco Chairman & CEO, offers insight on the firm's latest quarter. Q4 was unusually strong, he says, particularly in Asia.

$CSCO $XLK $QQQ

Saturday, August 25, 2012

Big Tech Assets Rise, Apple Reaches Record $163 Billion

Total Assets

The Largest USA Tech Companies have reported all-time high aggregate total assets of $917 billion. This is a net increase of +$32 billion and +4% from the prior quarter. Apple led the way, and continues pulling away, with another incredible +$12 billion quarterly increase, followed by Google (+$9 billion), and Oracle (+$4 billion). The only decrease was reported by IBM (-$1.5 billion).

The $100 Billion Club: For the latest quarter reported, Apple continues #1 and largest at $162.9 billion. HP continues in second at $127.7 billion, followed by #3 Microsoft at $121.3 billion. IBM is #4 at $113.8 billion. Cisco is #5 at $91.2 billion. The next group is #6 Google at $86.1 billion, #7 Oracle ($78.3 billion), and #8 Intel ($72.4 billion). Qualcomm is a more distance #9 ($42.4 billion). Amazon is last and #10 at $21.0 billion. I have included Amazon because of the Kindle Fire, streaming, cloud services, and the resulting competition with others listed.

Capital Ratio

The Largest USA Tech Companies have reported an average capital to assets ratio of 54.18%, a slight decrease of -0.45% from the prior quarter. Six of the ten companies reviewed reported increases, led by Intel (+2.3%) and HP (+1.4%). Google reported the largest decrease (-4.8%) followed by Microsoft (-3.5%).

For the latest quarters reported, Qualcomm (77%) has surpassed Google (75%) to have the strongest capital position. Apple is #3 at 69%, followed closely by Intel at 67%. Next are Cisco, Oracle, and Microsoft at 56%, 56%, and 55%, respectively. Amazon is 8th at 36%, followed by HP (33%) and finally IBM (18%) is last and #10.

Status
Updated through Amazon quarterly financial results reported 7-26-12
Next reports: Cisco (August 15), HP (August 22)

Largest USA Tech Companies Earnings Plunge, But Apple Still Dominates

$XLK $QQQ $AAPL $AMZN $CSCO $GOOG $HPQ $IBM $INTC $MSFT $ORCL $QCOM

Saturday, August 18, 2012

Largest USA Tech Companies Earnings Plunge, But Apple Still Dominates

Quarterly Net Income

The Largest USA Tech Companies have reported quarterly aggregate net income of $26.3 billion, which is lower than the prior quarter $33.9 billion. This is a sequential QoQ decrease of -$7.68 billion and -23%. Six of the ten companies reviewed reported a QoQ decrease in net income. The net decrease is not too unusual or unexpected as the second quarter of the calendar year is typically a slower financial performance on an annual cyclical basis. The largest sequential QoQ increases were Oracle (+$953 million) and IBM (+$816 million) and HP (+$125 million). The largest sequential QoQ decreases were by Microsoft (-$5.60 billion), Apple (-$2.80 billion), and Qualcomm (-$1.02 billion).

For the latest quarters reported, Apple continues dominating with an incredible $8.82 billion quarterly net income. Second was IBM at $3.88 billion and third was Oracle at $3.45 billion, combined less than half of Apple. The rest of the pack follows with #4 Intel at $2.83 billion, #5 Google at $2.79 billion, #6 Cisco at $2.17 billion, #7 HP at $1.59 billion, and #8 Qualcomm at $1.21 billion. Trailing are #9 Amazon at a mere $7 million and #10 Microsoft at a dismal net loss of -$492 million. I have included Amazon because of the Kindle Fire, streaming, cloud services, and the resulting competition with others listed. Apple comprises approximately 34% of the total quarterly net income of the 10 tech companies listed!

Return on Assets

The Largest USA Tech Companies have reported an average return on assets of +13.45%, a multi-quarter low and -1.13% decrease from the prior quarter of +14.58%. Eight of the ten companies reviewed reported decreases. Amazon and HP dragged the average down the most. The 2 sequential QoQ increases were Cisco (+0.24%) and IBM (+0.17%). The largest sequential QoQ decreases were Microsoft (-6.42%), Apple (-2.08%), and Amazon (-1.00%).

For the latest quarters reported, Best of Breed goes to Apple with a commanding and incredible lead of at +29.70% ROA. Apple is distantly followed by Intel (+17.61%), Qualcomm (+15.26%), and Google (+15.02%). Next are #5 Microsoft (+14.95%), #6 IBM (+14.30%), and #7 Oracle (+13.38%). Significantly lagging the field are #8 Cisco at +8.36% and #9 HP at a much lower +4.12%. Retail-oriented Amazon is last and #10 at a sinking +1.82%.

Updated through Amazon quarterly financial results reported 7-26-12
Next reports: Cisco (August 15), HP (August 22)

$XLK $QQQ $AAPL $AMZN $CSCO $GOOG $HPQ $IBM $INTC $MSFT $ORCL $QCOM

Friday, June 8, 2012

Big Tech Assets Rise, Apple Surges to $151 Billion

The Largest USA Tech Companies have reported aggregate total assets of $888 billion, which is the highest in the 5 quarters reviewed and an all-time high. This is a net increase of +$25 billion and +3% from the prior quarter. Apple led the way with a strong +$12 billion increase, followed by Microsoft (+$6 billion), Google (+$5 billion), and Qualcomm (+$4 billion). The only decreases were reported by Amazon (-$5 billion) and IBM (-$1 billion).

The $100 Billion Club: For the latest quarter reported, Apple continues #1 and largest at $150.9 billion. HP continues in second at $127.7 billion, followed by #3 Microsoft at $118.0 billion. IBM dropped to #4 at $115.3 billion. Next is #5 Cisco at $91.2 billion. The next group are #6 Google at $77.1 billion, which surpassed now #7 Oracle ($74.4 billion). Intel continues at #8 ($71.8 billion) followed by #9 Qualcomm ($41.5 billion). Amazon is last and #10 at $20.3 billion. I have included Amazon because of the Kindle Fire, streaming, cloud services, and the resulting competition with others listed.

The Largest USA Tech Companies have reported an average capital to assets ratio of 54.89%, a +1.39% increase from the prior quarter. The net increase was led by Amazon (+5%) and Apple (+3%). Only Google reported a decrease and this was negligible (-0.12%). For the latest quarters reported, Google continues leading with the strongest capital of 80%, followed by Qualcomm at 77%. Apple is #3 at 68%, followed closely by Intel at 65%. Next are Oracle, Microsoft, and Cisco at 58%, 58%, and 56%, respectively. Amazon is 8th at 36%, followed by HP (33%) and finally IBM (18%).

Status Updated through HP quarterly financial results reported 5-23-12

Largest USA Tech Companies Earnings Slip, Apple Dominates

Big Tech Market Cap: Apple Larger Than Microsoft and IBM Combined!

Big Tech Profits Increase: Qualcomm, Apple, Google Lead Surge

Thursday, May 31, 2012

Cisco Projects Internet Will Be 4 Times Larger in 4 Years

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Cisco's VNI Forecast Projects the Internet Will Be Four Times as Large in Four Years

Annual Cisco VNI Forecast Expects Worldwide Devices and Connections to Grow to Almost 19 Billion - Nearly Doubling From 2011 to 2016

SAN JOSE, Calif. and WASHINGTON D.C. - May 30, 2012 - Today, Cisco issued results of the annual Cisco® Visual Networking Index (VNI) Forecast (2011-2016), the company's ongoing initiative to forecast and analyze Internet Protocol (IP) networking growth and trends worldwide. The VNI Forecast update covers 2011-2016, and quantitatively projects the significant amount of IP traffic expected to travel public and private networks, including Internet, managed IP, and mobile data traffic generated by consumers and business users. This year, Cisco has also developed a new complementary study - the Cisco VNI Service Adoption Forecast, which includes global and regional residential, consumer mobile, and business services growth rates.

Welcome to the Zettabyte Era - Cisco VNI By the year 2016, annual global IP traffic will exceed a zettabyte. What does the zettabyte era look like? Well... By that same year, the Internet will drive almost four times more traffic than it did in 2011. And by 2016, the average Internet user will generate 32.3 gigabytes of traffic per month, up from just 11.5 in 2011. During this 5-year period, the percentage of global business users with two or more mobile devices will grow more than 3-fold (8.1%) (26.8%). By 2016, over half of the world's IP traffic will come from wi-fi. Globally, the average mobile connection speed will grow 10-fold, reaching 2.2 Mbps by 2016. The sum of all forms of video will exceed 86% of global consumer traffic. A four-fold increase from 2011. And of this growth, mobile video and desktop conferencing will be the fastest growing mobile and business services. By 2016, the gigabyte equivalent of all the movies ever made will cross global IP networks - EVERY 3 MINUTES!. Over the course of a year, that's about a trillion gigabytes...or one zettabyte. Welcome to the zettabyte era...

By 2016, annual global IP traffic is forecast to be 1.3 zettabytes – (a zettabyte is equal to a sextillion bytes, or a trillion gigabytes). The projected increase of global IP traffic between 2015 and 2016 alone is more than 330 exabytes, which is almost equal to the total amount of global IP traffic generated in 2011 (369 exabytes). This significant level of traffic growth and service penetration is driven by a number of factors, including:

1 - An increasing number of devices: The proliferation of tablets, mobile phones, and other smart devices as well as machine-to-machine (M2M) connections are driving up the demand for connectivity. By 2016, the forecast projects there will be nearly 18.9 billion network connections - almost 2.5 connections for each person on earth, - compared with 10.3 billion in 2011

2 - More Internet users: By 2016, there are expected to be 3.4 billion Internet users - about 45 percent of the world's projected population according to United Nations estimates.

3 - Faster broadband speeds: The average fixed broadband speed is expected to increase nearly fourfold, from 9 megabits per second (Mbps) in 2011 to 34 Mbps in 2016.

4 - More video: By 2016, 1.2 million video minutes - the equivalent of 833 days (or over two years) - would travel the Internet every second.

5 -Wi-Fi growth: By 2016, over half of the world's Internet traffic is expected to come from Wi-Fi connections.

Visual Networking Index (VNI) - Cisco Systems

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Monday, May 28, 2012

Largest USA Tech Companies Earnings Slip, Apple Dominates

The Largest USA Tech Companies have reported quarterly aggregate net income of $33.9 billion, which is lower than the prior quarter $37.4 billion. This is a sequential QoQ decrease of -$3.5 billion and -9.4%. The net decrease is not unusual or unexpected as the first quarter of the calendar year is typically lower than the prior fourth quarter (Holiday) results on an annual cyclical basis. The largest sequential QoQ increases were HP (+$1.2B) and Qualcomm (+$829 million). The largest sequential QoQ decreases were by IBM (-$2.43 billion), Microsoft (-$1.52 billion), Apple (-$1.44 billion), and Intel (-$622 million).

For the latest quarters reported, Apple leads with an incredible $11.62 billion. Second is Microsoft at $5.11 billion, less than half of Apple. These top two are followed by #3 IBM at $3.07 billion. The rest of the pack follows with #4 Google at $2.89 billion, #5 Intel at $2.74 billion, #6 Oracle at $2.50 billion, #7 Qualcomm at $2.23 billion, and #8 Cisco at $2.17 billion. Trailing are #9 HP at $1.47 billion and #10 Amazon at a mere $130 million. I have included because of the Kindle Fire, streaming, cloud services, and the resulting competition with others listed. Apple comprises 34% of the total quarterly net income of the 10 tech companies listed!

The Largest USA Tech Companies have reported an average return on assets of +14.61%, a +0.19% increase from the prior quarter of 14.42%. Amazon and HP dragged the average down. The largest sequential QoQ increases were Qualcomm (+2.62%), Apple (+1.44%) and Google (+0.75%). The largest sequential QoQ decreases were Microsoft (-1.18%), Intel (-1.09%), and HP (-0.93%).

For the latest quarters reported, Best of Breed goes to Apple with a commanding and incredible lead of at +31.78% ROA, followed by Microsoft at 21.37% and Intel at 18.14%. Next are #4 Google 15.76%, #5 Qualcomm 15.51%, #6 IBM 14.13%, and #7 Oracle 13.44%. Significantly lagging the field are #8 Cisco 8.36% and #9 HP at a dismal 4.74%. Retail-oriented Amazon is last and #10 at +2.82%.

Updated through Cisco quarterly financial results reported 5-9-12
Next reports: HP (May 23), Oracle (June)

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Friday, May 25, 2012

Cisco Reports Steady Earnings, Lower Outlook

Cisco ($CSCO) reported QE April 2012 financial results on May 9.

Cisco has rebounded from the financial performance lows of 2011 and is doing relatively well. Let's be clear, Cisco is not a high growth company but trudges along on recent year on year revenues growth of 6%+ and volatile YoY historical earnings per share growth of 15%+. If you get more - great - if you get less - wait until next quarter. Cisco's business environment has been described as slow-moving sales.

The QE April 2012 Non-GAAP earnings per share of $0.48 beat estimates by +$0.01 and GAAP EPS of $0.40 was the same as the prior quarter. CEO John Chambers has restructured Cisco, cut costs, increased dividends, continues stock repurchasing, and has successfully aimed at better bottom line results.

Revenues were an all-time high and operating income and net income were very good. Margins were steady and solid. Cisco has moved beyond the quarterly restructuring charges, a minor $20M, and financial performance has improved. CEO John Chambers stated, "We delivered solid results this quarter with record revenue and non-GAAP earnings per share. We are successfully executing against our long-term strategic plan of growing profit faster than revenue, and in a cautious IT spending environment, we continue to outperform our competitors."

Cisco Income Statement QE April 2012 Cisco reported record total revenues of $11.59B, net income of $2.17B, and GAAP earnings per share of $0.40. From the prior quarter QE January 2012, these were +0.53%, -0.78%, and +0.00%, respectively. From the prior year QE April 2011, these were +6.64%, +19.81%, and +21.21%, respectively. The quarterly restructuring charge was an immaterial $20M, compared to the prior quarters of $3M, $202M, $768M, and $31M. Gross, operating, and net margins were steady at 61.87% (6-quarter high), 23.73% (9-quarter high), and 18.68%. Cash flow from operations of $0.54 per share is above the historical average. The operating expense ratio of 38.13% is below the historical average.

Cisco Balance Sheet QE April 2012 Cisco's total assets increased to a record $91.15 billion. The capital to assets ratio of 56.36% is stable and a 10-quarter high. The current ratio of 67.15% is a multi-year high. The return on assets is low for a technology company, but increased to 8.36%, a 4-quarter high. Total debt dipped to 17.96% of total assets, a multi-year low, and is the result of an embedded financing operation.

Cisco Outlook QE July 2012 CEO John Chambers estimated total revenues to grow 2% to 5% YoY. This equates to $11.42B to $11.76B for QE July 2012. This is about the same as the QE April 2012 guidance and results. Non-GAAP earning per share is estimated at $0.44 to $0.46. This is lower than the QE April 2012 Non-GAAP EPS results of $0.48. This isn't really all that bad an outlook as the QE July is typically the annual cyclical low for Cisco. This would be the best QE July performance in years, if not ever.

Workforce Reduction, July 18, 2011 Cisco will layoff 6,500 employees and incur cash-based restructuring charges, consisting of severance and other one-time termination benefits, estimated at $1.3 billion over several quarters. Cisco estimates approximately $750 million of these charges will be incurred in QE July 2011, including approximately $500 million relating to the voluntary early retirement program. The remaining estimated $550 million of charges will be recognized in the subsequent 4 quarters, beginning with QE October 2011. Cisco Announces Additional Detail on Comprehensive Action Plan

Cisco Financial Performance by the Quarters

Thursday, November 10, 2011

Cisco Financial Performance Rebounds (Financial Charts, Video) Total Revenues Increase, Restructuring Charges Decrease CSCO

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Cisco Systems reported QE October 2011 financial results on November 9, 2011

Cisco Financial Performance Rebounds: Total Revenues Increase, Restructuring Charges Decrease

Cisco Summary QE October 2011 The quarterly restructuring charge of $202M was lower than the prior quarter of $768M and financial performance rebounded accordingly. Total revenues reached a new high, while net income and earnings per share rebounded. Return on assets has continued decreasing which may reach a bottom as the quarterly restructuring charges subside. Cisco's problem has been described as "slow moving sales" and add to that debt of almost 20% of total assets. Financial position of adequate capital with moderate debt and reasonable liquidity continues. The bottom is probably in for Cisco and upcoming quarters will be stronger both YoY and QoQ sequentially.

Cisco Income Statement QE October 2011 Cisco reported total revenues of $11.26B, net income of $1.78B, and earnings per share of $0.33. From the prior quarter QE July 2011, total revenues were up +0.54%, net income up +44.24%, and earnings per share up +50.00%. From the prior year QE October 2010, these were up +4.71%, down -7.93%, and down -2.94%, respectively. The quarterly restructuring charge was $202M, down from $768M prior quarter. Gross, operating, and net margins were 61.21%, 19.63%, and 15.79%, respectively. Gross margin was flat QoQ while operating margin and net margin rebounded due to the smaller quarterly restructuring charge. Cash flow from operations of $0.43 per share dropped to the annual cyclical low and should increase next quarter. The average income tax rate jumped up to 20.85%, which is higher than the historical average.

Cisco Balance Sheet QE October 2011 Cisco's total assets decreased -0.15% QoQ to $86.96 billion from the prior quarter record of $87.10 billion. The capital to assets ratio (total stockholders' equity divided by total assets) of 54.29% is at the lower end of the historical range, but is stable. The current ratio (current assets divided by total assets) of 65.85% is at the higher end of the historical range The return on assets is low for a technology company, continues decreasing, and is now at a multi-quarter low +7.52%. Total debt is almost 20% of total assets and is the result of an embedded financing operation.

Cisco Outlook QE January 2011 CEO John Chambers estimated total revenues to grow 7% - 8% YoY.

Workforce Reduction, July 18, 2011
Cisco will layoff 6,500 employees and incur cash-based restructuring charges, consisting of severance and other one-time termination benefits, estimated at $1.3 billion over several quarters. Cisco estimates approximately $750 million of these charges will be incurred in QE July 2011, including approximately $500 million relating to the voluntary early retirement program. The remaining estimated $550 million of charges will be recognized in the subsequent 4 quarters, beginning with QE October 2011. Cisco Announces Additional Detail on Comprehensive Action Plan

Cisco Financial Performance by the Quarters (Charts)

Cisco Earnings Per Share Below is a chart of quarterly earnings per share. Current Earnings per Share of $0.33 is up +50% QoQ and down -3% YoY. The recent peaks have been the QE October 2008 and QE April 2010 at $0.37. The low has been $0.19 for QE July 2009. The EPS chart average is $0.30.

Cisco Cash Flow per Share Below is a chart of cash flow from operations per share. Cisco has a very striking cash flow cycle on the chart. Current Cash Flow per Share of $0.43 is another annual cyclical drop and presumably bottom. The peaks have been QE July 2009 of $1.65, QE July 2010 of $1.76, and QE 2011 of $1.83. The lows have been QE October 2009 of $0.25, QE October 2010 of $0.25, and QE October 2011 of $0.43. The CFS chart average is $1.05.

Cisco Total Revenues, Operating Income, and Net Income Below is a chart of quarterly total revenues, operating income, and net income. Current Total Revenues of $11.26B is a multi-year high, up +1% QoQ and +5% YoY. Total Revenues have been consistent and over $10B for 7 consecutive quarters. Current Operating Income of $2.21B is a 4-quarter high, rebounding from the prior quarter $768M restructuring charge. Net Income of $1.78B is the same as the historical average, up +44% QoQ, and down -8% YoY. The TR, OI, and NI chart averages are $10.50B, $2.12B, and $1.78B, respectively.

Cisco Gross Margin, Operating Margin, and Net Margin Below is a chart of quarterly gross margin, operating margin, and net margin. Current Gross Margin of 61.21% is level QoQ, down YoY, and continues below the historical 62.58% area. Current Operating Margin of 19.63% rebounded QoQ, after the prior quarter $768M restructuring charge. Current Net Margin of 15.79% also rebounded, but is below the historical average. The GM, OM, and NM chart averages are 62.58%, 20.28%, 17.08%, respectively.

Cisco Return on Assets Below is a chart of annual return on average assets per quarter. The total net income for the most recent 4 quarters is divided into average assets for the most recent 4 quarters to obtain a rolling annualized ROA, an annualized return on average assets for the 12 months (4 quarters) ended. Cisco has a historically low ROA for a technology company and the ROA continues decreasing. Current Return on Assets of +7.52% is another low, well below the QE July 2010 of 10.39% and decreased for the 6th consecutive quarter on the chart. The overall general decline in ROA is because net income is relatively stable while total assets is increasing. The past 2 quarters included restructuring charges, which further decreased ROA. The ROA chart average is 9.05%.

Cisco Growth Rates Below is a chart of the annual (YoY, Y/Y, annual change) growth rates for total revenues and earnings per share. Current Total Revenues Growth of +5% continues the mult-year string of YoY increases, but is the 4th consecutive quarter less than 7%. Current Earnings per Share Growth of -3% reflects the restructuring charges of the most recent 2 quarters. Earnings per share have decreased 4 consecutive quarters. The TRG and EPSG chart averages are +12.50% and +13.53% respectively, but EPSG has been negative 4 consecutive quarters.

Cisco Revenue Sources Below is a chart of quarterly revenue sources. Cisco changed the reporting of these segments beginning the QE October 2011, but did not restate prior quarters. Therefore, only this most recent quarter is provided below.

Cisco Geographic Revenues Below is a chart of quarterly geographic revenues. Cisco changed the reporting of these segments beginning the QE October 2011, but did not restate prior quarters. Therefore, only this most recent quarter is provided below. EMEA is Europe, Middle East, Africa. APJC is Asia Pacific, Japan, China.

Cisco Operating Expense Ratio Below is a chart of quarterly operating expense ratio, which is operating expenses divided by total revenues. The current Operating Expense Ratio of 41.58% has dropped below the historical average, after a spike upwards due to the $768M restructuring charge last quarter. This indicates an increased efficiency plus a higher proportion of revenues is reaching the bottom line, net income and earnings per share. The OER chart average is 42.77%.

Cisco CEO Chambers on Earnings, Market Share

Nov. 10 (Bloomberg) -- John Chambers, chief executive officer of Cisco Systems Inc., talks about the company's fiscal first-quarter profit and U.S. corporate tax policy. Excluding some costs, profit climbed to 43 cents a share, the world's largest maker of networking equipment said yesterday in a statement. Chambers speaks with Betty Liu on Bloomberg Television's "In the Loop." (Source: Bloomberg)

Cisco Reports First Quarter Earnings

SAN JOSE, CA - November 9, 2011 - Cisco (NASDAQ: CSCO)

* Q1 Net Sales: $11.3 billion

* Q1 Net Income: $1.8 billion GAAP; $2.3 billion non-GAAP

* Q1 Earnings per Share: $0.33 GAAP; $0.43 non-GAAP

Cisco (NASDAQ: CSCO), the worldwide leader in networking that transforms how people connect, communicate and collaborate, today reported its first quarter results for the period ended October 29, 2011. Cisco reported first quarter net sales of $11.3 billion, net income on a generally accepted accounting principles (GAAP) basis of $1.8 billion or $0.33 per share, and non-GAAP net income of $2.3 billion or $0.43 per share.

"We delivered a solid quarter," said John Chambers, Cisco Chairman and CEO. "We've completed the majority of our restructuring and have organized Cisco to successfully execute against our strategy of providing intelligent networks, architectures and integrated products that solve customers' business problems. Even in times of limited capital spending, intelligent networks are being deployed to drive new business, revenue and consumption models, enable new customer and employee experiences, and drive efficiencies. Cisco's leadership in networking, video, collaboration and cloud, offered together in an integrated architectural approach, uniquely positions Cisco as a strategic business partner."

About Cisco

Cisco (NASDAQ: CSCO) is the worldwide leader in networking that transforms how people connect, communicate and collaborate. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com/.

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