Cisco Systems released its latest earnings report after closing bell tonight, posting adjusted earnings of 59 cents per share on $12.84 billion in revenue, a 4% year over year increase. Analysts had been looking for earnings of 56 cents per share on $12.66 billion in revenue. In last year’s fourth fiscal quarter, Cisco reported earnings of 55 cents per share and $12.4 billion in revenue.

Cisco Systems Rises On Earnings Beat
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Cisco reports record Q4, FY revenues, adjusted earnings

GAAP earnings were 45 cents per share for the fourth fiscal quarter. For the full 2015 fiscal year, the company posted revenue of $49.2 billion, a 4% increase from 2014, GAAP earnings of $1.75 per share, and non-GAAP Earnings of $1.21 per share.

Cisco recorded a 4% increase each in product and service revenue. America sales rose 7% year over year, although sales in Europe, the Middle East, and Africa and the Asia, Pacific, Japan, and China region were flat. The company reported a 14% increase in sales each for its Collaboration and Data Center businesses. Cisco’s Switching business recorded a 2% increase in revenue, while its NGN Routing segment saw a 3% increase.

Non-GAAP gross margin was 62.1% overall, while product gross margin was 61%. The company reported that the decline in non-GAAP gross product margin was due to product mix and pricing, although productivity partially offset those declines.

Cisco’s deferred revenue increased 7% to $15.2 billion with a double-digit increase in deferred product revenue during the quarter. Subscription-based and software revenue drove a 21% increase in deferred product revenue. Cisco had about $5.1 billion in product backlog, compared to $5.4 billion at the end of last year.

Cisco provides guidance

Cisco management also provided guidance for the first fiscal quarter of 2016. They’re expecting revenue to increase by between 2% and 4%. They project non-GAAP earnings of between 55 cents and 57 cents per share for the current quarter. They’re expecting non-GAAP gross margin to be between 61% and 62%.

As of this writing, shares of Cisco Systems were up 2.83% at $28.69 per share.