cisco-annual-report-2021

RESULTS OF OPERATIONS
A discussion regarding our financial condition and results of operations for fiscal 2021 compared to fiscal 2020 is presented
below. A discussion regarding our financial condition and results of operations for fiscal 2020 compared to fiscal 2019 can
be found under Item 7 in our Annual Report on Form 10-K for the fiscal year ended July 25, 2020, filed with the SEC on
September 3, 2020.
Revenue
The following table presents the breakdown of revenue between product and service (in millions, except percentages):
July 31,
2021
Years Ended 2021 vs. 2020
July 25,
2020
July 27,
2019
Variance
in Dollars
Variance
in Percent
Revenue:
Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 36,014 $ 35,978 $ 39,005 $ 36 —%
Percentage of revenue . . . . . . . . . . . . . . . . . . . . . . 72.3% 73.0% 75.1%
Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,804 13,323 12,899 481 4%
Percentage of revenue . . . . . . . . . . . . . . . . . . . . . . 27.7% 27.0% 24.9%
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 49,818 $ 49,301 $ 51,904 $ 517 1%
We manage our business primarily on a geographic basis, organized into three geographic segments. Our revenue, which
includes product and service for each segment, is summarized in the following table (in millions, except percentages):
July 31,
2021
Years Ended 2021 vs. 2020
July 25,
2020
July 27,
2019
Variance
in Dollars
Variance
in Percent
Revenue:
Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 29,161 $ 29,291 $ 30,927 $ (130) —%
Percentage of revenue . . . . . . . . . . . . . . . . . . . . . . 58.5% 59.4% 59.6%
EMEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,951 12,659 13,100 292 2%
Percentage of revenue . . . . . . . . . . . . . . . . . . . . . . 26.0% 25.7% 25.2%
APJC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,706 7,352 7,877 354 5%
Percentage of revenue . . . . . . . . . . . . . . . . . . . . . . 15.5% 14.9% 15.2%
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 49,818 $ 49,301 $ 51,904 $ 517 1%
Amounts may not sum and percentages may not recalculate due to rounding.
Total revenue in fiscal 2021 increased by 1% compared with fiscal 2020. Product revenue was flat and service revenue increased
by 4%. Our total revenue reflected growth in EMEA and APJC. Americas was flat. Product revenue for the emerging countries
of BRICM, in the aggregate, experienced a 6% product revenue decline, with decreases in each of these countries with the
exception of India.
In addition to the impact of macroeconomic factors, including the IT spending environment and the level of spending by
government entities, revenue by segment in a particular period may be significantly impacted by several factors related to
revenue recognition, including the complexity of transactions such as multiple performance obligations; the mix of financing
arrangements provided to channel partners and customers; and final acceptance of the product, system, or solution, among other
factors. In addition, certain customers tend to make large and sporadic purchases, and the revenue related to these transactions
may also be affected by the timing of revenue recognition, which in turn would impact the revenue of the relevant segment.
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