Cisco Systems, Inc. - CSCO STOCK NEWS

Cisco's 2024 AI Readiness Index reveals a widening gap between AI deployment urgency and organizational readiness. While 98% of companies report increased urgency to deploy AI, only 13% are fully prepared to implement their AI strategies, down from 14% last year. The study, involving 8,000 organizations, shows that 85% believe they have less than 18 months to demonstrate AI impact. Key infrastructure challenges include only 21% having necessary GPUs for AI demands and 30% having adequate data protection capabilities. Companies plan to allocate 30% of IT budgets to AI in the next five years, despite current implementations falling short of expectations.

MGM Resorts International has signed a 5.5-year Whole Portfolio Agreement (WPA) with Cisco, gaining access to most of Cisco's software portfolio. The agreement includes cybersecurity, software-defined networking, digital experience assurance, full-stack observability, data center, and services. This partnership aims to enhance guest experiences across all MGM properties through network automation and will enable future location services and machine learning applications. The implementation will support MGM's sustainability goals while ensuring uptime and security for their 24/7 operations.

Cisco has announced its participation in the 2024 RBC Capital Markets Global TMIT Conference scheduled for November 20, 2024. The session will feature Scott Herren, EVP and Chief Financial Officer, and Mark Patterson, EVP and Chief Strategy Officer, with moderation by Matthew Hedberg, Managing Director of RBC Capital Markets. The event will take place at 8:20 a.m. PT / 11:20 a.m. ET and will be accessible via webcast on Cisco's Investor Relations website. No new financial information will be discussed during this conference call.

The Cisco Foundation has released its FY24 Impact Report, highlighting significant achievements in global community impact. Through strategic partnerships, the foundation reached over 170 million people in more than 100 countries. Key metrics show that 40% of funded solutions reach over 1 million people annually, and 97% of partners secured additional funding attributed to Cisco's support. The foundation emphasizes that 81% of partner organizations maintain local staff presence, ensuring community-focused approaches. The report also updates on their $100M Climate Regeneration commitment introduced in FY21, which combines grant funding for non-profits with investments in climate initiatives.

Cisco reported Q1 FY2025 revenue of $13.8 billion, down 6% year-over-year, with product revenue declining 9% and services revenue growing 6%. Product orders increased 20% year-over-year (9% excluding Splunk). GAAP EPS was $0.68 (down 24%) and non-GAAP EPS was $0.91 (down 18%). The company showed strong profitability with GAAP gross margin of 65.9% and non-GAAP gross margin of 69.3%. For Q2 FY2025, Cisco projects revenue between $13.75-13.95 billion and non-GAAP EPS of $0.89-0.91. Full-year FY2025 guidance estimates revenue of $55.3-56.3 billion.

Cisco and LTIMindtree have expanded their partnership, with LTIMindtree adopting Cisco Secure Access as its security service edge (SSE) solution to protect 80,000 hybrid workers. The implementation provides secure internet access and advanced zero trust network access with embedded AI. LTIMindtree will also offer next-generation SSE solutions to its global clients through Cisco Secure Access. The partnership focuses on delivering integrated Secure Access Service Edge (SASE) solutions, combining LTIMindtree's vertical expertise with Cisco's technology to provide seamless and secure connected experiences for both remote and in-office workers.

Cisco Systems has mobilized its Crisis Response (CCR) team to support communities affected by Hurricane Helene in western North Carolina. The team deployed 9 staff members and 19 volunteers, installing emergency networking kits with satellite terminals to provide secure connectivity to 11 response organizations. The response effort included support for state emergency management, hospitals, police, and fire departments. Cisco employees contributed over 550 volunteer hours and traveled 7,000 miles delivering equipment. A fundraising campaign raised $800,000, including $359,000 in employee donations and matches, plus $460,000 in corporate grants to support various relief organizations.

Cisco (NASDAQ: CSCO) has unveiled new Wi-Fi 7 access points featuring AI-native capabilities, enhanced security, and smart workspace solutions. The new offering includes self-configuring access points with global use detection and location awareness, integrated with the Cisco Spaces platform for smart workplace transformation. A unified subscription licensing model provides flexible management across cloud, on-premises, and hybrid networks. The system features advanced threat detection, AI-native device profiling, and ThousandEyes integration for performance optimization. The Wi-Fi 7 access points will be available to order in November 2024 with shipping scheduled for December 2024.

Cisco and the OECD have launched the Digital Well-being Hub, a pioneering research initiative to study technology's comprehensive impact on human well-being. The project aims to examine the relationship between digital technologies and factors including life satisfaction, mental health, AI tools, digital skills, and cyber safety.

The study reveals that 40% of adults in OECD countries lack basic digital skills, while over half of workers worry about AI-related bias. The Hub will collect crowdsourced insights and combine them with OECD data to create the world's first holistic view of digital well-being, with findings expected in 2025.