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Quarterly unrecognized revenue cash receipts from Cisco's two-tier distributors dropped -21% Y/Y View comments
reorganized its product sales reporting categories, cash receipts related to unrecognized revenue from two-tier distributors declined Y/Y during Cisco's 4th Quarter, and by -21% to boot.
For financial reporting purposes, Cisco breaks down its deferred product revenue into 2 separate categories:
Cash receipts related to unrecognized revenue from two-tier distributors .
Unrecognized revenue on product shipments and other deferred revenue.
Curiously, during Cisco's August 10th Q4'FY11 earnings conference call , Cisco CFO Frank Calderoni totally omitted any mention of the decline and Wall Street analysts failed to inquire about it too, however, Calderoni did state:
"We ended the fourth quarter with total deferred revenue of $12.2 billion, an increase of 10% year-over-year. Of that total, $3.7 billion was deferred product revenue and $8.5 billion was deferred service revenue, representing increases of approximately 1% and 15% year-over-year, respectively."
Cisco's sequential quarterly declines in cash receipts related to unrecognized revenue from two-tier distributors (highlighted in yellow)
(in millions) Q1'FY10 Q2'FY10 Q3'FY10 Q4'FY10 Q1'FY11 Q2'FY11 Q3'FY11 Q4'FY11
Cash receipts $526 $530 $728 $867 $830 $882 $791 $683
Source: U.S. Securities and Exchange Commission
Cisco's sequential quarterly declines in unrecognized revenue on product shipments and other deferred revenue(highlighted in yellow)
(in millions) Q1'FY10 Q2'FY10 Q3'FY10 Q4'FY10 Q1'FY11 Q2'FY11 Q3'FY11 Q4'FY11
Unrecognized revenue $2,551 $2,789 $2,737 $2,788 $2,737 $2,877 $2,898 $3,003
Source: U.S. Securities and Exchange Commission
Cisco's sequential quarterly closing stock price declines as of the date of its quarterly financial results(highlighted in yellow)
Q1'FY10 Q2'FY10 Q3'FY10 Q4'FY10 Q1'FY11 Q2'FY11 Q3'FY11 Q4'FY11
Closing stock price $24.17 $22.97 $26.93 $23.07 $22.86 $20.93 $17.52 $15.97
Source: Yahoo! Finance
Cisco's sequential quarterly operating cash flow declines(highlighted in yellow)
(in millions) Q1'FY10 Q2'FY10 Q3'FY10 Q4'FY10 Q1'FY11 Q2'FY11 Q3'FY11 Q4'FY11
Operating Cash Flow $1,488 $2,486 $2,967 $3,232 $1,667 $2,609 $2,979 $2,824
Source: U.S. Securities and Exchange Commission
Cisco's sequential quarterly margin declines(highlighted in yellow)
Q1'FY10 Q2'FY10 Q3'FY10 Q4'FY10 Q1'FY11 Q2'FY11 Q3'FY11 Q4'FY11
Product Gross Margin 65.47% 64.70% 64.31% 62.43% 62.65% 58.93% 60.35% 59.88%
Service Gross Margin 64.47% 63.67% 62.31% 63.80% 63.60% 64.80% 64.95% 66.79%
Gross Margin 65.26% 64.51% 63.94% 62.68% 62.83% 60.16% 61.28% 61.28%
Source: U.S. Securities and Exchange Commission
Cisco's sequential quarterly sales declines(highlighted in yellow)
Cisco's Sales Q1'FY10 Q2'FY10 Q3'FY10 Q4'FY10 Q1'FY11 Q2'FY11 Q3'FY11 Q4'FY11
Routers $1,600 $1,586 $1,714 $1,731 $1,804 $1,672 $1,860 $1,733
Switches 2,851 3,409 3,661 3,608 3,551 3,151 3,299 3,436
New Products 2,545 2,784 2,837 3,246 3,114 3,202 3,262 3,457
Other 204 197 224 223 231 211 248 295
Services 1,821 1,839 1,932 2,028 2,050 2,171 2,197 2,274
TOTAL $9,021 $9,815 $10,368 $10,836 $10,750 $10,407 $10,866 $11,195
Cisco's New Q1'FY10 Q2'FY10 Q3'FY10 Q4'FY10 Q1'FY11 Q2'FY11 Q3'FY11 Q4'FY11
Video Home $901 $1,153 $1,115 $1,095 $1,000 $1,097 $1,060 $1,105
Collaboration 703 715 752 993 1,019 980 1,046 1,102
Security 403 394 405 526 395 359 413 415
Wireless 310 254 271 307 338 340 358 407
Data Center 228 268 294 325 362 426 385 428
TOTAL $2,545 $2,784 $2,837 $3,246 $3,114 $3,202 $3,262 $3,457
Source: Cisco Systems
Related stories:
Palo Alto Networks is the culprit behind Cisco's -8.4% FY11 security sales decline
Cisco's Q4'FY11 operating cash flow, product gross margin and router sales sequentially declined
Cisco discounts Nexus 7000 switch -76% to win Purdue University's Hansen Cluster bid
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