Cisco Systems, Inc.

Welcome to Cisco's fourth quarter fiscal and 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 fourth 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 first quarter of fiscal 2020. 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. FSCA 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 Q4 fiscal 2019. As such, all of the revenue, non-GAAP and product orders information we will be discussing today 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. This guidance we provided during our Q3 earnings call and today's call has been normalized in the same way. With that, we'll now turn it over to Chuck.

Thank you, Marilyn. Good afternoon, everyone. Our Q4 results marked a strong end to a great year. Our teams executed well through a very dynamic environment. We delivered significant innovation across our entire portfolio, and we continued our business model transition with software subscriptions now at 70% of total software revenue, up 12 points year over year. We delivered strong revenue and double-digit non-gap earnings per share growth for the full year and in the fourth quarter. We also continued to generate healthy margins, cash flow, and returns for our shareholders. Our technology is fundamentally redefining IT architectures to help our customers manage the complexities of a multi-cloud world and transform for the future. Let me cover some recent highlights across our portfolio, starting with infrastructure platforms. We continue to see strong performance with broad-based growth across the majority of our portfolio, led by our next-generation enterprise networking solutions. Over the last two years, we have built a foundation for intent-based networking by re-architecting our entire networking portfolio to deliver new capabilities through our automation platform. At Cisco Live, we launched several new technology innovations across networking domains to more effectively secure and manage users and applications across the entire enterprise, from campus networks and wide area networks to data centers and the IoT edge. We also added several AI and ML software capabilities to improve network management through automation. A great example of this is our new AI network analytics capability, which delivers greater visibility and insights across the entire enterprise network. In Data Center, we continue to execute well as we help enable our customers to securely access their applications and their data anywhere from private to public cloud environments, as well as at the edge. We are innovating across every facet of our portfolio, integrating AI, automation, security, and assurance into our Nexus switching platforms and our 400 gig offerings. This quarter, we delivered data center network insights, providing critical analytics and proactive network management capabilities through automation to increase our customers' ability to troubleshoot and remediate their environments. We also continued to invest in silicon and optics to build a next-generation Internet for our customers. The recently announced intent to acquire Acacia is a good example of how we are enhancing our silicon and optics portfolio to enable web-scale service provider and data center operator customers to meet today's fast-growing consumer demand for data. Now turning to security, which had an incredible year. Cybersecurity continues to be the top priority for our customers, driving another consecutive quarter of double-digit growth. As the industry leader in networking and cybersecurity, we are investing in and extending our subscription-based security innovations across all networking domains in today's zero-trust environment. By extending our ability to detect threats across public clouds, and by protecting the campus, branch, WAN, and data center against threats, we are the only company providing an integrated end-to-end security architecture across multi-cloud environments. Throughout the year, we've expanded our family of cloud security solutions to help secure identity, endpoints, and the network, which has led to accelerating customer adoption as they move or expand to the cloud. We are also extending this protection from the network to branch offices to roaming users with flexible solutions designed to secure our customers' SD-WAN environments. During the quarter, we were excited to announce the availability of a full web proxy capability on our global SaaS platform umbrella to complement our on-premise appliances. Trust plays a critical role as customers access their network and applications, and identity plays a critical role in delivering a secure, consistent experience no matter how, when, or where they connect. This market dynamic was central to our Duo security acquisition, and we continue to see customer momentum reflecting the power of Duo's differentiated, market-leading SaaS platform. Moving to applications. Our collaboration business continues to perform well as we execute against our strategy to accelerate the future of work, communications, and collaboration. Earlier this year, we shared our vision for cognitive collaboration, which we believe is quickly becoming the foundation to deliver massively personalized experiences and transform how we work. We are leading the market in integrating AI and ML into our enterprise collaboration portfolio, bringing intelligence and context to help our customers work smarter and increase productivity. Through our AI-driven innovations like People Insights, Facial Recognition, and WebEx Assistants, We're driving expanded collaboration experiences on any device integrated with our customers' business process workflows. Building on these cognitive innovations, we announced our intent to acquire Voicea, a market-leading provider of voice-based artificial intelligence solutions. With Voicea's technology, we will enhance our entire WebEx portfolio with a powerful transcription service combining AI and automated speech recognition to enable more actionable meetings, improve productivity, and enhance experiences. We also achieved another outstanding quarter of growth with AppDynamics, demonstrating rapid customer adoption of our differentiated end-to-end visibility and analytics platform from the end user to the network to the application. In summary, we had a great quarter and finished the fiscal year 2019, and I'm proud of what our teams have accomplished. We are executing well in a time of uncertainty, delivering differentiated innovation across our portfolio, and extending our market leadership and enterprise networking applications and security. Our performance reflects our relevance as well as the ongoing value we're providing our customers as they transform for the future. We are as committed as ever to providing them with the right innovation to drive greater impact and success. As I look ahead, I could not be more confident about our unique position in the market and the tremendous opportunity in front of us. Kelly, I'll now turn it over to you.