By Kimberly Chin 
 

Cisco Systems Inc. said it will change the way it reports its product and service revenue, part of its plans to showcase the strength of its software business.

The company said it will break down its product and service revenue into new categories including Secure, Agile Networks, Hybrid Work, End-to-End Security, Internet for the Future, Optimized Application Experiences, Other Products, and Services.

"This change will better align our product categories with our strategic priorities," Cisco said Wednesday.

It will continue to report its segments based on geographies, it said.

Cisco will also change the way it presents its annual recurring revenue, or ARR, a non-GAAP performance metric that measures the annualized revenue run-rate of active subscriptions, term licenses and maintenance contracts, it said. It will report ARR net of rebates to customers and partners as well as other adjustments. This will go into effect in the fiscal first quarter, it said.

The company discussed these changes at its Investor Day on Sept. 15, it said.

 

Write to Kimberly Chin at kimberly.chin@wsj.com

 

(END) Dow Jones Newswires

October 20, 2021 18:05 ET (22:05 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
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