Cisco Systems, Inc. - CSCO STOCK NEWS

Karissa A. Breen, Head of Cybersecurity Journalism at KBI.Media, discusses the important role of AI in cybersecurity. AI's ability to analyze vast amounts of data quickly enables it to uncover new patterns and identify potential security threats. While AI enhances threat detection and improves data security, it's also being used by threat actors for more sophisticated attacks. The cybersecurity industry faces a widening skills gap as AI adoption accelerates, creating opportunities for professionals with both technical and soft skills.

Breen emphasizes the need for diversity in cybersecurity, particularly encouraging women to enter the field. She highlights how women's unique perspectives and skills in empathy, collaboration, and problem-solving can be valuable in addressing cybersecurity challenges and shaping the future of AI in security.

Cisco has partnered with Claflin University, an HBCU in rural Orangeburg, South Carolina, to address critical broadband access challenges affecting students and the local community. The partnership includes:

1. Deployment of a private 5G network for the campus and surrounding area
2. $1.7 million donation in equipment and services for IT modernization
3. Implementation of a student help desk for community support
4. Training for the school's IT staff and upskilling through Cisco Networking Academy
5. Hosting a Cisco Cyber Security Resilience workshop

This initiative aims to bridge the digital divide, improve educational opportunities, and enhance connectivity for both the university and the Orangeburg community. The partnership serves as a model for other HBCUs and demonstrates Cisco's commitment to social justice and digital inclusion.

Cisco Networking Academy has launched a unified teaching and learning experience on NetAcad.com, integrating offerings from NetAcad.com and SkillsForAll.com. The new platform features a mobile-first design and flexibility for instructor-led, self-paced, and hybrid learning options. It includes over 50 courses in up to 18 languages, covering topics like cybersecurity, networking, AI & data science, programming, IT, digital literacy, and professional skills.

The platform supports five languages at launch: English, Arabic, French, Portuguese, and Spanish. This integration aims to scale access to quality IT education and prepare learners for technology work in the future. Cisco continues to innovate in areas such as AI, game and project-based learning, career resources, and comprehensive teaching features.

Cisco partners with various non-profits to transform underserved communities through entrepreneurial support. Highlighted collaborations include Agora Partnerships, The Bridge International, CARE Peru, Centro Community Partners, Defy Ventures, and Hand in Hand International.

Agora Partnerships focuses on SMEs in Latin America, especially women-led businesses, integrating eco-innovations and reporting 81% of participants seeing growth.

The Bridge International aids social innovators in Asia, with a 26% increase in funds raised through a revamped crowdfunding platform.

CARE Peru emphasizes female entrepreneurship through educational initiatives, impacting over 7 million people in 50 years.

Centro Community Partners assists low-income women and entrepreneurs of color, facilitating access to $4.7M in capital.

Defy Ventures supports formerly incarcerated individuals with business training and career readiness, achieving a recidivism rate of less than 10% for program graduates.

Hand in Hand International empowers women in poverty-stricken regions, reporting women entrepreneurs double their incomes.

Cisco has announced its participation in several financial community events for August and September 2024. These include conferences hosted by Jefferies, Evercore ISI, Deutsche Bank, Citi, RBC, Goldman Sachs, and JP Morgan across various locations including Chicago, Dana Point, New York, San Francisco, and London.

Key participants from Cisco include Rakesh Chopra (SVP & Fellow, Common Hardware Group), Sami Badri (VP, Head of Investor Relations), Gary Steele (President, Go-to-Market), Scott Herren (EVP and CFO), and Gordon Thomson (VP, Service Provider, EMEA).

Webcasts will be available for select events, including the Citi Global TMT Conference, RBC Virtual Investor Meeting, and Goldman Sachs Communacopia + Technology Conference. No new financial information will be discussed at these events.

Cisco Networking Academy honors the International Day of the World's Indigenous People on August 9, recognizing the challenges faced by nearly half a billion Indigenous Peoples worldwide. The academy aims to empower learners in 190 countries through education and digital skills training, bridging digital divides for underrepresented communities.

The PR highlights three inspiring stories:

• Tallara, an Indigenous Australian participating in a cybersecurity program and helping remote communities get online
• Julio Lezcano, a Panamanian instructor launching community networks in Emberá indigenous communities
• Dr. Gabriella Arellano, teaching at Sitting Bull Community College and part of a consortium offering cybersecurity courses in rural tribal colleges

These examples demonstrate Cisco Networking Academy's commitment to powering inclusive futures for all, including Indigenous Peoples, through education and digital skills development.

Cisco ThousandEyes hosted its third annual Partner Connection event in May, incorporating a community giveback element in collaboration with Cisco's Partnering for Purpose team. The event, held in St. Petersburg, focused on addressing youth hunger through a meal-packing activity supporting the Feed our Future program of the United Food Bank of Plant City.

Participants packed 400 snack packs, totaling approximately 1,000 pounds of food, during a 75-minute session. This initiative not only fostered partner collaboration but also made a tangible difference in the local community. The success of the event highlights the power of partnership in amplifying positive impact, setting an example for others to follow in integrating social responsibility into corporate events.

Cisco reported its Q4 and fiscal year 2024 earnings, highlighting both growth and declines. Q4 FY 2024 revenue was $13.6 billion, a 10% drop year-over-year. GAAP EPS decreased by 44% to $0.54, while Non-GAAP EPS decreased by 24% to $0.87. However, product order growth was strong at 14% YoY.

Total revenue for FY 2024 was $53.8 billion, down 6%. GAAP EPS decreased by 17% to $2.54, and Non-GAAP EPS decreased by 4% to $3.73. The Splunk acquisition contributed $4.3 billion to ARR, boosting it by 22% to $29.6 billion. Software revenue reached $18.4 billion, up 9% YoY.

Guidance for Q1 FY 2025 estimates revenue between $13.65-$13.85 billion and Non-GAAP EPS between $0.86-$0.88. For FY 2025, revenue is projected between $55.0-$56.2 billion, with Non-GAAP EPS between $3.52-$3.58.

A quarterly dividend of $0.40 per share is declared, to be paid on October 23, 2024.

Cisco explores how hybrid work can advance sustainability in the workforce. A Gartner survey found that 44% of workers worldwide have adopted a hybrid model, surpassing full-time office workers. Hybrid work can reduce commute-related emissions and improve employee well-being, productivity, and engagement.

Cisco's technology, including Webex, AnyConnect VPN, and ThousandEyes, enables secure remote work. The company's Smart Building solutions optimize workplaces for sustainability. Cisco aims for 100% of new products and packaging to incorporate Circular Design Principles by FY2025.

Hybrid work supports inclusivity, with features like real-time translation and AI enhancements. However, many organizations struggle to implement effective strategies. Cisco's approach, as stated by CEO Chuck Robbins, is that 'The office is a magnet, not a mandate,' emphasizing the importance of flexibility in advancing sustainability and inclusivity in the workforce.