To The Moon

Global network solutions provider Cisco (Nasdaq: CSCO) has announced quarterly results that beat market expectations. The company focuses on diversifying subscription-based services. Cisco Finance Cisco's first-quarter revenue jumped 6% to $13.6 billion, beating Street's forecast of $13.3 billion. Adjusted EPS increased 5% to $0.86 and was also above the market estimate of $0.84. Cisco product revenue grew 8% to $10.25 billion and services revenue was flat at $3.34 billion. By region, revenue for the Americas increased 5%, EMEA 11% and APJC flat. For the quarter, data center network switches remained the top source of revenue with revenue up 12% to $6.68 billion. Revenue from the Internet for Future segment, which includes routed optical networking hardware, fell 5% to $1.3 billion. Revenue in the Collaborations segment, which includes Webex, fell 2% to $1.1 billion. The company is focusing on diversifying into software and subscription services to reduce reliance on its network segment, but progress has been slow. Software revenue grew 5% to $3.9 billion, with software subscription revenue up 11%. About 43% of Cisco's revenue now comes from subscriptions, up 6% to $5.9 billion. For the current quarter, Cisco expects revenue growth of 4.5% to 6.5% and non-GAAP EPS of $0.84 to $0.86. The market is looking for revenue growth of 4%. For this year, Cisco expects revenue growth of 4.5% to 6.5% and EPS of $3.51 to $3.58. Cisco's 5G Strategy Cisco has focused on its 5G strategy over the past few years. It has continued to expand its offerings in the segment and recently announced a partnership with T-Mobile to launch a highly scalable, nationally distributed, cloud-based converged core gateway. . The new converged core gateway will simplify T-Mobile's operations, allowing it to move resources faster and deploy services like 5G Internet at home. It will also accelerate new 5G and IoT services such as sharding and voice over 5G (VoNR) to market by allowing T-Mobile to easily test and deploy new capabilities at scale. With a fully automated converged core gateway, T-Mobile will be able to simplify network functions across the cloud, edge, and data center to dramatically reduce operational lifecycle management. The increased efficiency will give its customers access to faster speeds, lower latency, and advanced capabilities like edge computing. Meanwhile, Cisco is also trying to increase innovation in the cloud space. Cisco AppDynamics recently announced major updates to AppDynamics Cloud, its cloud-based visualization solution. Upgrades will combine business transaction insights with business transaction monitoring with an App Cloud in-context experience. This will allow organizations to extend visibility across cloud-native applications that correlate with the business landscape of their Amazon Web Services (AWS) environment. The insights gained from AIOps will enable teams to observe applications and take action to optimize performance and resolve issues in near real-time. Initially, the new features will support digital services, cloud-native applications, and workloads on AWS. Cisco and AWS will build on these capabilities together to create full stack visibility. Cisco shares are currently trading at $48.32 with a market capitalization of $198.5 billion. It hit a 52-week high of $62.82 last January and a 52-week low of $38.60 in October. @MillionaireTiger @TigerStars @CaptainTiger