Cisco Systems Inc. (CSCO, Financial) filed Quarterly Report for the period ended 2010-10-30.
Cisco Systems Inc. has a market cap of $109.24 billion; its shares were traded at around $19.56 with a P/E ratio of 13.3 and P/S ratio of 2.7. Cisco Systems Inc. had an annual average earning growth of 23% over the past 10 years. GuruFocus rated Cisco Systems Inc. the business predictability rank of 2.5-star.CSCO is in the portfolios of Oak Value of Oak Value Capital Management, David Tepper of APPALOOSA MANAGEMENT LP, Ronald Muhlenkamp of Muhlenkamp Fund, Richard Snow of Snow Capital Management, L.P., Jeremy Grantham of GMO LLC, Manning & Napier Advisors, Inc, Bill Nygren of Oak Mark Fund, Robert Olstein of Olstein Financial Alert Fund, Kenneth Fisher of Fisher Asset Management, LLC, Diamond Hill Capital of Diamond Hill Capital Management Inc, John Hussman of Hussman Economtrics Advisors, Inc., Larry Robbins of Glenview Capital, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Richard Aster Jr of Meridian Fund, John Buckingham of Al Frank Asset Management, Inc., Pioneer Investments, Sarah Ketterer of CAUSEWAY CAPITAL MANAGEMENT LLC, Mark Hillman of Hillman Capital Management, Brian Rogers of T Rowe Price Equity Income Fund, Whitney Tilson of T2 Partners Management, LP, Jeff Auxier of Auxier Focus Fund, PRIMECAP Management, RS Investment Management, Mario Gabelli of GAMCO Investors, Richard Perry of Perry Capital, Steven Cohen of SAC Capital Advisors, Tom Russo of Gardner Russo & Gardner, Bill Frels of Mairs & Power Inc. , Chris Davis of Davis Selected Advisers, George Soros of Soros Fund Management LLC.
The 21% increase in product revenue was driven by year-over-year growth across our product categories. In particular, we experienced revenue increases in our Router products category of 13%, principally as a result of strength in the high-end category. We had year-over-year revenue growth of 25% in our Switches product category, chiefly as a result of strong revenue growth in both modular and fixed-configuration offerings. Our New Products category experienced a year-over-year revenue increase of 22%. The increase was spread across almost all of the sub-categories within New Products, led by revenue growth rates of 45% in collaboration products and 59% in data center products.
The amount of product and service revenue recognized in a given period is affected by our judgment as to whether an arrangement includes multiple deliverables and, if so, our valuation of the units of accounting for the multiple deliverables. According to the accounting guidance prescribed in Accounting Standards Codification (ASC) 605, Revenue Recognition, we use vendor-specific objective evidence of selling price (VSOE) for each of those units, when available. We determine VSOE based on our normal pricing and discounting practices for the specific product or service when sold separately. In determining VSOE, we require that a substantial majority of the selling prices for a product or service fall within a reasonably narrow pricing range, generally evidenced by approximately 80% of such historical standalone transactions falling within plus or minus 15% of the median selling price. VSOE exists across most of our product and service offerings. In certain limited circumstances when VSOE does not exist, we apply the selling price hierarchy to applicable multiple-deliverable arrangements. Under the selling price hierarchy, third-party evidence of selling price (TPE) will be considered if VSOE does not exist, and estimated selling price (ESP) will be used if neither VSOE nor TPE is available. Generally, we are not able to determine TPE because our go-to-market strategy differs from that of others in our markets, and the extent of customization varies among comparable products or services from our peers. In determining ESP, we apply significant judgment as we weigh a variety of factors, based on the facts and circumstances of the arrangement. We typically arrive at an ESP for a product or service that is not sold separately by considering company specific factors such as geographies, competitive landscape, internal costs, gross margin objectives, pricing practices used to establish bundled pricing, and existing portfolio pricing and discounting.
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Cisco Systems Inc. has a market cap of $109.24 billion; its shares were traded at around $19.56 with a P/E ratio of 13.3 and P/S ratio of 2.7. Cisco Systems Inc. had an annual average earning growth of 23% over the past 10 years. GuruFocus rated Cisco Systems Inc. the business predictability rank of 2.5-star.CSCO is in the portfolios of Oak Value of Oak Value Capital Management, David Tepper of APPALOOSA MANAGEMENT LP, Ronald Muhlenkamp of Muhlenkamp Fund, Richard Snow of Snow Capital Management, L.P., Jeremy Grantham of GMO LLC, Manning & Napier Advisors, Inc, Bill Nygren of Oak Mark Fund, Robert Olstein of Olstein Financial Alert Fund, Kenneth Fisher of Fisher Asset Management, LLC, Diamond Hill Capital of Diamond Hill Capital Management Inc, John Hussman of Hussman Economtrics Advisors, Inc., Larry Robbins of Glenview Capital, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Richard Aster Jr of Meridian Fund, John Buckingham of Al Frank Asset Management, Inc., Pioneer Investments, Sarah Ketterer of CAUSEWAY CAPITAL MANAGEMENT LLC, Mark Hillman of Hillman Capital Management, Brian Rogers of T Rowe Price Equity Income Fund, Whitney Tilson of T2 Partners Management, LP, Jeff Auxier of Auxier Focus Fund, PRIMECAP Management, RS Investment Management, Mario Gabelli of GAMCO Investors, Richard Perry of Perry Capital, Steven Cohen of SAC Capital Advisors, Tom Russo of Gardner Russo & Gardner, Bill Frels of Mairs & Power Inc. , Chris Davis of Davis Selected Advisers, George Soros of Soros Fund Management LLC.
Highlight of Business Operations:
For the first quarter of fiscal 2011, our total revenue increased by 19% year over year. Within total revenue, net product revenue increased 21% and net service revenue increased 13%. The revenue increase for the period was in part the result of revenue from our acquisitions of Starent in the second quarter of fiscal 2010 and Tandberg in the third quarter of fiscal 2010. From our geographic segment perspective, net revenue increased on a year-over-year basis by 18% in the United States and Canada segment, 11% in our European Markets segment, 41% in Emerging Markets, and 22% in our Asia Pacific Markets segment (which now includes Japan). Customer market revenue performance in the first quarter of fiscal 2011 as compared with the first quarter of fiscal 2010 consisted of increases in the enterprise and public sector, commercial, and service provider markets. Our consumer market experienced a sales decline on a year-over-year basis for the first quarter of fiscal 2011.The 21% increase in product revenue was driven by year-over-year growth across our product categories. In particular, we experienced revenue increases in our Router products category of 13%, principally as a result of strength in the high-end category. We had year-over-year revenue growth of 25% in our Switches product category, chiefly as a result of strong revenue growth in both modular and fixed-configuration offerings. Our New Products category experienced a year-over-year revenue increase of 22%. The increase was spread across almost all of the sub-categories within New Products, led by revenue growth rates of 45% in collaboration products and 59% in data center products.
The amount of product and service revenue recognized in a given period is affected by our judgment as to whether an arrangement includes multiple deliverables and, if so, our valuation of the units of accounting for the multiple deliverables. According to the accounting guidance prescribed in Accounting Standards Codification (ASC) 605, Revenue Recognition, we use vendor-specific objective evidence of selling price (VSOE) for each of those units, when available. We determine VSOE based on our normal pricing and discounting practices for the specific product or service when sold separately. In determining VSOE, we require that a substantial majority of the selling prices for a product or service fall within a reasonably narrow pricing range, generally evidenced by approximately 80% of such historical standalone transactions falling within plus or minus 15% of the median selling price. VSOE exists across most of our product and service offerings. In certain limited circumstances when VSOE does not exist, we apply the selling price hierarchy to applicable multiple-deliverable arrangements. Under the selling price hierarchy, third-party evidence of selling price (TPE) will be considered if VSOE does not exist, and estimated selling price (ESP) will be used if neither VSOE nor TPE is available. Generally, we are not able to determine TPE because our go-to-market strategy differs from that of others in our markets, and the extent of customization varies among comparable products or services from our peers. In determining ESP, we apply significant judgment as we weigh a variety of factors, based on the facts and circumstances of the arrangement. We typically arrive at an ESP for a product or service that is not sold separately by considering company specific factors such as geographies, competitive landscape, internal costs, gross margin objectives, pricing practices used to establish bundled pricing, and existing portfolio pricing and discounting.
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