Cisco Systems, Inc.

Welcome to Cisco's first quarter fiscal year 2019 financial results conference call. At the request of Cisco Systems, today's conference is being recorded. If you have any objections, you may disconnect. Now I would like to introduce Marilyn Mora, Head of Investor Relations. Manny, you may begin.

Thanks, Michelle. Welcome, everyone, to Cisco's first quarter fiscal 2019 quarterly earnings conference call. This is Marilyn Mora, Head of Investor Relations. And I'm joined by Chuck Robbins, our chairman and CEO, and Kelly Kramer, our CFO. By now, you should have seen our earnings press release. A corresponding webcast with slides, including supplemental information, will be made available on our website in the investor relations section following the call. Income statements, full gap to non-gap reconciliation information, balance sheets, cash flow statements, and other financial information can also be found in the financial information section of our investor relations website. As is customary in Q1, we have made certain reclassifications to our prior period amounts to conform to the current period's presentation. The reclassified amounts have been posted on our website. Click on the financial reporting section of the website to access these documents. Throughout this conference call, we will be referencing both GAAP and non-GAAP financial results and we'll discuss product results in terms of revenue and geographic and customer results in terms of product orders, unless stated otherwise. All comparisons made throughout this call will be on a year-over-year basis, unless stated otherwise. The matters we will be discussing today include forward-looking statements, including the guidance we will be providing for the second quarter of fiscal 2019. They are subject to the risks and uncertainties that we discuss in detail in our documents filed with the FCC, Specifically, the most recent report on Form 10-K, which identifies important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements. With respect to guidance, please also see the slides and press release that accompany this call for further details. As a reminder, CISCO will not comment on its financial guidance during the quarter unless it is done through an explicit public disclosure. With that, I'll now turn it over to Chip.

Thank you, Marilyn. Good afternoon, everyone. We delivered another great quarter. It is absolutely clear that the strategy and transformation that we laid out three years ago is working. We accelerated revenue growth, expanded margins, and generated strong operating cash flow and double digit earnings per share growth. We saw broad-based growth across all of our geographies, product categories, and customer segments. This was driven by strong execution, differentiated innovation, and our transition to more software and subscription offerings. we are well positioned to capture significant growth opportunities while creating long-term value for our shareholders. In today's environment, there's an ever-increasing number of connected devices with users expecting an always-on experience with access to any application. The enterprise has expanded to now include multiple clouds and applications are evolving at an unprecedented rate. Customers facing a new level of complexity are increasingly seeing the value of our integrated platforms over standalone products. We are fundamentally changing the network and security industry. We're building an architecture that is designed to securely connect any user on any device on any network to any application running anywhere. This creates an enormous opportunity for us as we deliver a multi-domain intent-based networking architecture that drives automation, simplicity, and agility for our customers. Now let's take a more detailed look at our results as we continue to deliver new innovation across our entire portfolio. starting with infrastructure platforms. Over a year ago, we set out on a strategy that would disrupt how growing data from a proliferation of new connected devices and complex traffic flows would be managed and secured from the private enterprise into multiple cloud environments. We brought to market an intent-based architecture capable of capturing business intent and applying it across wired, wireless, and enterprise routing, including SD-WAN. This allows our customers to automate their operations, applications, and security policies for efficiency and business agility. This value proposition resonates strongly with our customers and is driving continued strong customer ramp of our Catalyst 9000 family of switches. Yesterday, at our partner summit, we announced several exciting new additions to this architecture. We launched the next additions to the Cat 9K family, the 9200, and the 9800. The Catalyst 9200 series of switches extend intent-based networking to simple branch deployments and mid-market customers. The Catalyst 9800 is our newest wireless controller. We continue to help our customers run consistent security, automation, and analytics services across wireless and wired environments. The 9800 gives our customers ultimate flexibility, running anywhere from on-premise in any cloud or embedded virtually on Catalyst 9000 switches. We also announced a major new architectural change for the Modern Branch Network. Cisco is unifying our security and SD-WAN technologies to help organizations embrace the cloud faster, with choice and confidence. We provide the simplest way to integrate SD-WAN with our cloud security. This is a great example of how the expansion into the cloud is driving our entire portfolio. In the data center, as more customers move to multi-cloud environments, the need for secure, virtualized infrastructure grows. Our strategy is to enable our customers to address increasing connectivity and data growth while securely enabling workloads across any combination of private, public, or multi-cloud environments. We continue to invest in innovation to help our customers transform their data centers for improved efficiency, scale, and resiliency. This has resulted in tremendous traction with our Nexus 9K, ACI, and UCS solutions as we architect security from the application to the network and support cloud workloads wherever they may reside. Building on the success of our industry-leading Nexus switch portfolio, we recently unveiled new Nexus 400 gig switches. We are committed to leading the market transition from 100 gig to 400 gig, providing customers with increased bandwidth and scale in their data center environments, powering any workload in the cloud. The addition of 400 gig to our Nexus portfolio extends the power of ACI, providing intent-based networking to enterprises, web scale, and service providers to enable them to build compact, fully automated, high bandwidth fabrics. Cisco is the only company that not only delivers a best-of-breed 400 gig portfolio, but also brings customers the architectural solutions for today's multi-cloud world. Last week, we expanded our hybrid cloud portfolio by introducing the industry's first hybrid solution for Kubernetes, on Amazon Web Services. We are delivering a hybrid cloud solution that is designed to enable our customers to easily connect, secure, and monitor Kubernetes-based applications across on-premise and the AWS cloud. Turning to our security business, we again delivered another robust performance with double-digit growth. Our goal is to be our customers' number one security partner. We are building a comprehensive and integrated security portfolio focused on effectively detecting, rapidly containing, and quickly responding to threats. Spanning from the edge to the data center and to the cloud, our customers' users, devices, applications, and data are protected wherever they are. We continue to add more SaaS-based offerings to our broad security portfolio. A great example of this is our recent acquisition of Duo Security, which provides cloud-based identity solutions for unified access security and multi-factor authentication. Duo solutions play an important role in extending our intent-based architecture into multi-cloud environments, simplifying policy for cloud security and expanding endpoint visibility coverage. The integration of Cisco's network, device, and cloud security platforms with Duo's Zero Trust authentication and access products is designed to allow us to easily and securely connect users to any application on any network device. Moving to applications. Data intelligence continues to be critical for organizations to improve business outcomes and agility. Our AppDynamics solution uniquely addresses this need, resulting in another quarter of strong double-digit growth. Our innovative capabilities in application monitoring and analytics provides unparalleled real-time business insights to our growing customer base, making us the clear market leader. We achieved a solid quarter in our collaboration business and continue to set the standard for how people connect, collaborate, and create every single day. We are defining the future of productivity and collaboration by providing customers of all sizes with a comprehensive portfolio to help them share data through any device, anywhere. Customers recognize the value we bring with more than 95% of the Fortune 500 using our collaboration solutions. We're delivering unique capabilities, enabling rich collaborative experiences, increased productivity, and helping our customers transform their workspaces. This is accomplished through our new modern Webex experience, AI-enabled devices, and enhanced interoperability across our on-premise and cloud solutions. Yesterday, we expanded our collaboration offerings with a full suite of cloud calling and team collaboration tools to extend our customers' on-premise investments with new hybrid solutions from the cloud to the end user. These innovations include the availability of broad soft cloud calling with WebEx Teams through service providers, 85-inch WebEx Board, and our new portfolio of huddle room solutions with RoomKit Mini and WebEx Share. In summary, we had a great quarter, and our opportunity has never been greater. Our growth continued to accelerate as we executed well against our strategy, continued to drive innovation across our portfolio, and delivered more software and cloud-based offerings. It is clear our customers are looking to Cisco as a trusted partner to help them operate in a multi-cloud world and to transform their businesses. We are well positioned with our growing portfolio across multiple domains as we continue to innovate to bring our customers a more secure, automated, and simple IT infrastructure. We believe the strength and differentiation of our portfolio, combined with the power of our business model, provides us with a strong foundation for fiscal year 19 to create long-term growth and shareholder value. Kelly, I'll now turn it over to you.