Cisco Systems, Inc.

Welcome to Cisco's third quarter fiscal year 2019 financial results conference call. At the request of Cisco, 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. Ma'am, you may begin.

Thanks, Michelle. Welcome, everyone, to Cisco's third 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. 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 made on a year-over-year basis. The matters we will be discussing today include forward-looking statements, including the guidance we will be providing for the fourth quarter of fiscal 2019. They are subject to the risks and uncertainties that we discuss in detail in our documents filed with the SEC, specifically the most recent reports on Forms 10-K and 10-Q, which identify 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. Fiscal will not comment on its financial guidance during the quarter unless it is done through an explicit public disclosure. In Q2, on October 28th, we completed the sale of our SPVSS business and accordingly had no revenue or expense from that business in Q3 fiscal 2019. As such, all of the revenue, non-GAAP, and product orders information we will be discussing is normalized to exclude the SPVSS business from our historical results. We have provided historical financial information for the SPVSS business in the slides that accompany this call and on our website to help understand these impacts. The guidance we provided during our Q2 earnings call and today's call has been normalized in the same way. I will now turn it over to Chip.

Thank you, Marilyn, and good afternoon, everyone. We had another strong quarter of performance across the business, demonstrating our ability to execute despite the ongoing uncertainty in both the macro and geopolitical environments. Technology continues to be at the heart of our customer strategy, and now more than ever, our market-leading portfolio and differentiated innovation is resonating with them as they transform their IT infrastructure. In the quarter, we delivered strong revenue, margins, non-gap earnings growth, and operating cash flow. As we continue to help our customers achieve their business objectives, I am confident about the future of Cisco and the growth opportunities ahead of us. New technologies like cloud, AI, IoT, 5G, and Wi-Fi 6, among others, are coming together to revolutionize the way we operate our businesses and deliver new experiences for our customers and teams. We are fundamentally changing the way our customers approach their technology infrastructure to address the rising complexity in their IT environments. We are building the only integrated multi-domain intent-based architecture with security at the foundation. This is designed to allow our customers to securely connect their users and devices over any network to any application no matter where they are. We are integrating capabilities like artificial intelligence and machine learning across the entire portfolio so customers have greater insights resulting in better and faster business outcomes. Now for some highlights across our business. Starting with infrastructure platforms. Over the past several years, we've been working to integrate intent-based networking across our enterprise access portfolio to help our customers manage more users, devices, and things connecting to their networks. We brought to market tremendous innovation across wired, wireless, and enterprise routing, including SD-WAN, resulting in a continued strong traction of our enterprise networking portfolio. We are moving into an era of truly immersive and pervasive wireless connectivity, which generates demand for high density, low latency performance for real-time experiences over both wired and wireless networks. Enterprise networks today must be optimized for agility and security, leveraging cloud and wireless capabilities with the ability to garner insights from the data and security integrated throughout. Cisco is in a unique position to deliver this for our customers. We recently announced several new platforms expanding our enterprise networking portfolio with the launch of our subscription-based Wi-Fi 6 access points and Catalyst 9600 campus core switches, purpose-built for cloud-scale networking. By combining our automation and analytics software with our broad portfolio of switches, access points, and controllers, we are creating a seamless end-to-end wireless-first architecture for our customers. We also expanded our open roaming partnership ecosystem to now include Apple, Intel, Samsung, and others. to make Wi-Fi onboarding simple. With our newest Catalyst 9000 family additions, we have completed the most comprehensive enterprise networking portfolio refresh in our history. We have rebuilt our entire access portfolio with intent-based networking across wired and wireless. We also now have one unified operating system and policy management platform to drive simplicity and consistency across our customers' networks, all enabled by a software subscription model. In the data center, our strategy is to deliver multi-cloud architectures that bring policy and operational consistency no matter where applications or data resides by extending ACI and our hyper-converged offering HyperFlex to the cloud. Our partnerships with Amazon Web Services, Google Cloud, and Microsoft Azure are great examples of how we continue to work with web-scale providers to deliver new innovation. For example, we recently introduced Cisco Cloud ACI for AWS, a service that allows customers to manage and secure applications running in a private data center or in Amazon Web Services cloud environments. We also expanded our partnership with Google. We announced support for their multi-cloud platform Anthos to help customers build secure applications everywhere, from private data centers to public clouds with greater ease. Going forward, we will integrate this platform with our broad data center portfolio, including HyperFlex, ACI, SD-WAN, and StealthWatch Cloud to deliver the best multi-cloud experience for our enterprise customers. Moving to security, we continue to see strong momentum with another quarter of double-digit growth driven by our world-class security portfolio. Cisco is the world's largest cybersecurity company for enterprises with thousands of cybersecurity experts helping our customers globally. Our portfolio covers the entire threat continuum of the modern enterprise and integrates security into every networking domain. We are enabling all of our customers to transform and secure their networks for the rapidly evolving multi-cloud world. We have a platform that continuously detects threats and verifies trust. By combining Duo, Umbrella, Stealthwatch, ICE, and Tetration, we offer an end-to-end zero-trust architecture that is strongly resonating with customers. Now turning to applications. We continue to execute very well in our collaboration business. These platforms are becoming increasingly critical to how enterprises operate and manage their workforce. Customers are always looking to enhance their meeting experiences, and cognitive collaboration is quickly becoming the de facto standard for delivering more personalized experiences and transforming how we work. At Enterprise Connect, we introduce several new cognitive collaboration capabilities within our WebEx portfolio. integrating AI and ML to bring context and intelligence to meetings. The new innovations we launched include people insights, facial recognition, and WebEx calling, all which help to increase our customers' productivity, making work simple and seamless. Going forward, you'll see this greater level of intelligence integrated into every piece of our collaboration portfolio across calling, messaging, meetings, devices, and contact center. We also had another quarter of strong growth in app dynamics, as thousands of customers rapidly adopt our application intelligence platform for smarter and faster decision making. The ability to manage end-to-end application performance across all cloud environments is increasingly important. AppDynamics is the market leader in application and infrastructure analytics delivering unparalleled innovation. We offer the most comprehensive end-to-end visibility from connected devices and applications to the underlying network, providing better application performance and user experience. To summarize, I'm very proud of the progress our teams have made against our strategic priorities to drive profitable growth, accelerate differentiated innovation for our customers, and successfully execute our own transformation to more software and subscriptions. Enterprise IT architectures must transform to help our customers get the most out of all of their IT investments. More than ever, our customers need a trusted partner with an end-to-end architecture strategy to simplify, transform, and secure their businesses, and Cisco is that partner. Kelly, I'll now turn it over to you.