Ladies and gentlemen, please welcome Cisco Chairman and CEO, Chuck Robbins.
All right.
Thank you. That's why we invite so many Cisco people. That's good. Thank you. Good morning, ladies and gentlemen.
It's now 10 a. M. And the 2018 Annual Meeting of the Shareholders of Cisco Systems Inc. Will please come to order. I'm Chuck Robbins, Chairman and Chief Executive Officer of the company, and I will chair this meeting.
On behalf of all of us at Cisco, I want to welcome you and thank you for being in attendance. Before we proceed to the business portion of the meeting, I'd like to let you know that the other directors and executives that are present today in the first two rows, we have our directors on the front row and our executive leadership team on the 2nd row, and I'd like to ask you all to stand for just a moment, please. All right. At this time, I'd also like to thank Carol Bartz, who is not here, our retiring Lead Independent Director and John Hennessy, who is stepping down as of the conclusion of his term today, for their leadership and significant contributions to Cisco as long term Board members. As leaders of large corporations or large organizations, they both demonstrated strong vision in creating a path to a better future, and they've had such a valuable impact on Silicon Valley and the broader tech industry.
We were incredibly lucky to have Carol for 21 years and John for 16 years as Board members of Cisco. Their sound advice and leadership over the years were key to many of our successes. So on behalf of all of us at Cisco, a huge thank you to Carol and John, and I know we will all miss them greatly as they were significant contributors to the boardroom for Cisco. With that, it's now my pleasure to turn the meeting over to Evan Sloaves, Secretary of the Company, to lead the business portion of the meeting.
Thank you, Chuck. The Board of Directors has fixed the close of business on October 15, 2018 as the record date for the determination of shareholders entitled to vote at this meeting. Notice of this meeting was duly given to all shareholders of record on or about October 24, 2018. IVS Associates has been appointed as Inspector of Election for this meeting and has informed me that the shareholders owning majority of the outstanding shares of common stock are present in person or represented by proxy. And as a result, there is a quorum of shareholders for this meeting.
Therefore, this meeting is now open to proceed with this business. After the formal business meeting, we'll have a business review presented by Chuck, followed by a Q and A session. If you have a question you would like to ask, please write your question on the cards that were provided and pass your cards to the aisle. We will now proceed to the items of business set forth in the agenda and voting on all items will occur after I've described them. The first matter to be considered is the election of directors of the company.
The following individuals have been nominated by the Board upon the recommendation of the Nomination and Governance Committee to serve as directors until the next annual meeting of shareholders and until their successors were elected and qualified. And I ask each of you to stand as your name is called. I have Michelle Burns, Michael Capellas, Mark Garrett, Christina Johnson, Rod McGeary, Chuck Robbins, Arun Soren, Brent Saunders and as Steve West. No other nominations were received by the deadline of August 26, 2018. Therefore, the nominations are closed.
The Board of Directors recommends that the shareholders vote for election of each of the nominees. The next item is the approval of the amendment and restatement of the Cisco Systems employee stock purchase plan, including an extension of the term of the plan by 10 years and an increase in the maximum number of shares by 100,000,000. The Board also recommends the shareholders vote for this proposal. The next vote is on the advisory resolution to approve executive compensation. This is a non binding resolution that the shareholders approve the compensation of Cisco's named executive officers as disclosed pursuant to SEC compensation rules.
The Board recommends shareholders vote for this proposal as well. Next is the ratification of the appointment of PricewaterhouseCoopers as the company's independent registered public accounting firm for the fiscal year ended July 27, 2019. The Board of Directors recommends the shareholders vote for this proposal. I will now introduce each of the 2 resolutions proposed by our shareholders for consideration. Our response to each proposal can be found in the proxy statement.
Kenneth Steiner has given notice of a proposed resolution. Jing Zhao is here to present the resolution on behalf of the proponent. Please step forward to the podium. Great. And you can state your name and you have 5 minutes to present the proposal.
Thank you very much. Good morning. My name is Jin Zhao. So I'm going to propose 5 Independent Board Chairman sponsored by Kenneth Steiner. Shareholders request our Board of Directors to adopt as policy and amend our governing documents as necessary to require that the Chairman of the Board of Directors will never possible to be independent member of the Board.
The Board would have the discretion to phase in this policy for the next Chief Executive Officer, translation, implemented, so it does not violate any existing agreement. If the Board determines that Chairman who are independent then selected is no longer independent, the Board Chair select a new Chairman who satisfies the requirement of the policy within a reasonable amount of time. Compliance with this policy is waived if no independent director is available and waiting to serve as Chairman. This proposal requires that all the necessary steps be taken to accomplish the above. Caterpillar and the Wells Fargo are examples of companies changing course and naming an independent Board Chairman.
Caterpillar has even opposed a shareholder proposal for an independent Board Chairman at its annual meeting. There is plenty of work for an independent Chairman at Cisco Systems. Independent Chairman is more likely to see that Cisco has more independent directors. 6 Cisco Directors each had from 12 to 22 years long tenure. Let me skip some content.
I think you have the proposal there. Directors with long tenure also control 8% of their positions on the 3 most important Board of Directors committees, including all 3 Chairmanships, plus the Chairman of the Audit Committee and the Chairman of the Nomination Committee, received among the highest negative Director votes at the 2017 Annual Meetings. Okay. Let's just skip the other content. So please vote to enhance the oversight of our CEO for Independent Board Chairman.
Thank you very much.
Thank you. The Board recommends shareholders vote against this proposal for the reasons set forth in our proxy statement. As our final item of business, James Ritchie has given notice of the proposed resolution and Mr. Zhao is also going to present this proposal.
Proposal 6 deduct the impact of stock buybacks from the Exacti Pay sponsored by migration. Resolved, shareholders asked the Board of Directors to adopt a policy that it will not utilize earnings per share or its violations or financial ratios in determining senior executive incentive pay or eligibility for such pay unless the Board utilize the number of outstanding shares on the beginning date of the performance period and exclude the effects of stock buybacks that occur between that date and the end of the performance period, the policy shall be implemented without violating existing contract obligations in expense on the date that proposal is adopted. I think you have read all the proposal content, so I can just skip the supporting statement. Thank you very
much.
Thank you. The Board of Directors recommends shareholders vote against this proposal for the reasons set forth in the proxy statement. We will now vote on each of the discussed items of business. If you have not already voted or you wish to change your vote, please raise your hand to receive a shareholder ballot. And then once completed, please pass them to the aisles.
Anyone? Great. Since no one wants to change their votes, the polls are now closed for each of the items of business presented at this meeting and we'll take a few minutes to tabulate the balance. Okay. Mr.
Marshall, would you please provide me your report? Great. According to the preliminary report of the Inspector elections, each of the persons nominated as a Director has been elected. Each nominee received the support of at least 93% of the shares voted with approximately 97% average support. Each nominee also received the support of at least 65% of the company's outstanding shares.
The proposal to approve the amendment restatement of the employee stock purchase plan has also been approved with the support of approximately 99% of the shares voted, approximately 70% of the outstanding shares voted for this proposal. The advisory resolution regarding executive compensation has been approved with the support of approximately 82% of the shares voted, approximately 57% of the outstanding shares voted for this proposal. The proposal to ratify the appointment of PricewaterhouseCoopers as the company's independent registered public accounting firm has been approved with the support of approximately 97% of the shares voted, approximately 84% of the outstanding shares voted for this proposal. The shareholder proposal submitted by Kenneth Steiner was not approved with approximately 65% of the shares voted voting against this proposal, approximately 25% of the outstanding shares voted for this proposal. The shareholder proposal submitted by James Lucretia was not approved with approximately 94% of shares voted voting against this proposal with approximately 4% of the outstanding shares voting for this proposal.
I will now turn the meeting back over to Chuck.
Thank you, Evan. The matters for which this Annual Meeting of the Shareholders was called to consider have been completed. Since we have received no notice of any other business to come before the meeting, the 2018 Annual Meeting of Shareholders is hereby adjourned. I will now proceed with a brief business overview. If you have a question you'd like to ask, please write your questions on the cards that were provided and pass them to the aisle.
The online audience can also now submit their questions and the Q and A session will follow my brief business review. So hopefully everyone can hear me, and I want to thank all of you for spending time with us here today. We've had what I would consider a very successful fiscal year 2018 that we just completed back in July, and we also had a solid Q1, which I'll take you through. I'll be obviously making forward looking statements and you should reconcile any of those with what's been published in the 10 Q and 10 ks. But first, let's take a look back at last fiscal year.
We had $49,300,000,000 of revenue, up 3%. Our non GAAP EPS was up 9%. Gross margins continue to be strong at almost 64%. You can see the non GAAP operating income of $31,100,000 and our non GAAP net income of $12,700,000,000 Since we finished the year, we also have closed our Q1, which I'll cover in just a minute, but we also wanted to just reiterate our commitment to our shareholders and our commitment to delivering shareholder value. And if you look at our overall total shareholder return for the last 3 years is 66%.
And over the last fiscal year, these numbers are as of the end of our July, we delivered a 39% total shareholder return during that time period. We also have continued to raise our dividend with a compounded annual growth rate of 15% over the last 5 years, and we continue to take share count down now sitting somewhere around 4,900,000,000 shares. I think in light of the tough market that we've seen, our stock has performed relatively well, and we're pretty proud of the performance that the team has delivered over the last few years, and it's been a lot of work. And I'm going to take you through some of the things that we believe have helped drive this and why it gives us confidence in what we're going to do in the future. As I said earlier, we did we have completed our Q1 and we reported those numbers, which many of you have probably seen.
I think, Kelly, this was a record revenue quarter, our first $13,000,000,000 quarter in the history of the company. We grew 8% from a revenue perspective, which is one of the higher numbers that we've seen in quite a while. Our non GAAP EPS, obviously, very strong at 23%. And one of the things that we talked about and I talked about with you last year and the year before is this continued transition to more software content. And in that software content, we also wanted to ensure that we had that software being delivered as subscriptions, so that our customers are not only receiving innovation and value from that software and those subscriptions over the lifetime of the solution, but that they're also gaining value from those subscriptions so that they'll renew that at the end, which gives us not only happier customers, but it also gives us over time a much more predictable business model, which is one of the benefits of the transition that we've been going through.
Our gross margins continue to stand at 63.8%, 31.9%, so we improved our operating income, and you can see $3,500,000,000 And our subscriptions as a percentage of our software was at 57%. If I can talk just a little bit about what we've been really trying to do over the last few years and what I think has led to some of the performance that we've had. Obviously, we've had a strong global macro economic environment to operate in, as well as our teams have executed incredibly well, I think, over the last 3 years. What we really have done, I believe, is we've taken what were viewed as threats 4 or 5 years ago. If you step back and you look and think back to what was happening in the technology industry 4 or 5 years ago, there were several threats that were considered existential to Cisco.
There were articles written that the cloud was going to kill Cisco. There were articles written that software defined networking was going to be the end of Cisco. Commodity hardware and white box was going to be the end. The disaggregation of software and hardware and running it on commodity hardware was going to be the end. There are all these threats that were perceived as being incredibly negative for us.
And what I would tell you now is that not only do I believe that we clarified our position and our role relative to these threats, I believe we've also turned these threats into advantages for us. And at our recent Partner Summit, which was about 5, 6 weeks ago, I think, I stood on stage and said, the irony of all ironies is that Cloud is actually driving our growth, whereas 4 or 5 years ago, it was viewed to be a negative. We also believe that there was still innovation to be driven back in our core franchises.
If you
look at these very large franchises that we have that make up such a huge part of our business, it was our belief as a team that if we did not drive innovation back into those big franchises, it would just mathematically be difficult to grow. And our teams have done a phenomenal job. David Geckler and his team, from an engineering perspective, have delivered innovation a way that we haven't seen in a very long time. In June of 2017, we delivered a new architecture called intent based networking, which I'm not going to try to explain to all of you. But the important thing is that we delivered the first product underneath that architecture and there are 2 really important issues around this product.
It was called a Catalyst 9,000. And 2 things I would point out. We began to tell our analysts and our investors and our customers and everyone that we thought we could build a subscription software business on top of an Ethernet switch. And people didn't believe that was possible. And the Catalyst 9,000 was the first product, a piece of hardware that we've been building for years, an Ethernet switch that we delivered with a software subscription mandatory with our customers.
Not only did they adopt that and not only were they accepting of the subscription on top of the switch, that product was the fastest ramping product in the history of the company. So I think that David and the team absolutely delivered innovation back into our core and that continues today. We made a whole series of announcements 6 weeks ago. In the same space, we have a road map of more and more solutions that will be coming out over the next 12 to 24 months. So that was one big area that we had to do and we have delivered growth back and we're actually beginning to see the recapture of market share in our core markets, which was also very important for us.
The third thing that we wanted to deliver was a transition in our business model. Away from being exclusively sort of a net 30 business model. We were really good at building a product, taking an order, shipping a product, sending an invoice and sending a thank you note, right? We're really good at that. But our customers wanted to consume our technology in different ways.
Many of our customers wanted to consume our technology as a service. Many of them wanted to buy it as they used it. Many of them wanted to consume our software without our hardware. And it was really important for us to give our customers that level of flexibility. And in many cases, they were asking us to do things that we were unsure that were really necessary, but we hadn't said yes to them.
We subsequently said yes, and then many of them never actually took us up on it. But what they wanted to know is that we were flexible and that we would. And we also, as we give our customers the option on how to consume our technology, as they begin to buy it as a service, as they begin to buy software as subscriptions, that gives us an opportunity to go back in 3 years and monetize that solution again. So if you think about that Ethernet switch that I talked about a few minutes ago, historically, we would have sold that switch once. And then hopefully, 5 or 6 years later, we would convince that customer to replace it with another switch.
Today, most of the customers are buying a 3 year software subscription on the switch, so we sell it and then 3 years later, we have the opportunity to go back and renew that subscription. And over the next few years, we believe we can create 1,000,000,000 of dollars of software renewals on top of our core networking franchises, which is a really important thing, which gives us continued visibility and over time increased predictability, we believe, in our business model. The final thing that I think has been really important is Cisco has always had an amazing culture. And I'm looking out to my left over here at the man who started this culture, John Morgridge is in the room with us. This is the 2nd time I've actually seen him this week, so it's quite an honor.
And he began this culture of passion, passion about our business and passion about being an incredible steward on a global stage, an incredible company that contributes to making the world a better place. And what I think we've done over the last 3 years is just reamplify that culture. And we've begun to be louder in the marketplace about what we're doing and what we believe is important. And it really has energized the employee base. There's a number of awards that we have been receiving around not only sustainability, but around diversity and diverse places to work, great places to work.
Our ratings on lots of employee rating sites have gone up. And what happens is when our employees feel better, they actually are more energized, they're more positive, they drive more innovation, they engage with customers more effectively and it just creates this positive cycle that we see. So we've been very involved in a lot of things recently. We have we are a corporate sponsor with a group called Global Citizen. There was a concert in South Africa, I think it was last week, it feels like it was a month ago, where their mission is to eradicate extreme poverty globally by 2,030, and we're a corporate sponsor with them.
And at that event, we made a commitment relative to our Network Academies program. So John has a real passion for Network Academies. I'm sure that was started under your watch. In the 1st 20 years of Network Academies, we educated 7,800,000 students globally in the 1st 20 years. In FY 2017, we educated $1,300,000 In FY 2018, we educated $1,900,000 in 2 years.
And what we committed there was that we were going to educate 10,000,000 students around the world in the next 5 years, and 1,000,000 of those are going to be Africans. And I think we can actually overachieve on both of those metrics. We've gotten involved in issues here in the valley around housing and hunger and homelessness. And what we've effectively told our teams internally, who have great passion for doing all these things, is that our job is to keep running a great business because that gives us the right to do these other things. And so the culture right now I think is very strong.
And again, I want to reiterate that we're just amplifying what has been at the core of this company for 30 years. As we look at our technology, this is a complicated thing that we're doing right now, but effectively where our customers are is that they are moving from a world where every application they ran was in the private data centers to now applications running in hundreds of locations. They might be running them in Amazon's cloud and Microsoft's cloud and Google's cloud, IBM's cloud or they might be consuming software from companies like Workday or Salesforce. And what that means is that the architecture that they have in their technology from their branches to their campus to their data centers to their security architecture, all has to change. And that's what I mean when I say that, ironically, the cloud transition is actually driving our growth because what it's leading our customers to do is change how they build their technology architectures to actually accommodate that.
And we're uniquely positioned because it requires great cohesion across all those different elements and all those areas of their environments. And we're the only company that actually has capabilities across all of those areas. And what David and the team have been doing is building the best architectures within these domains, within the branch environment, within the campus environment, and now they're beginning to connect all those together, which is what our customers ultimately need to really succeed in the future environments that they're operating in. So I'm not going to go into any more detail, but this is at the heart of what our competitive advantage is going forward. Just a little a view quickly on some of the innovation that our teams have delivered.
The blue is internal innovation and these are just examples. There is a ton more that has been built and delivered. There are significant roadmaps, as I said, over the next year or so that we'll be sharing with our Board in just a few minutes. And then there are also some very strategic acquisitions that we have made along the way that are at the heart of what our customers are actually trying to deliver. In areas of security, in areas of collaboration, with businesses like AppDynamics, which are really helping us bring the application and the infrastructure environments closer together.
So I think our teams have had a really good mix over the last couple of years of accelerating our internal innovation and at the same time making those strategic acquisitions that we need to actually fill out the portfolio and continue to expand our opportunity as we go forward. A few examples of partnerships, these are critically important as we go forward. We cannot do what we're trying to do for our customers without deep partnerships. We can't help them navigate this complicated world where they're consuming services from all these different clouds if we don't have deep partnerships with the cloud providers. And we also have broad partnerships with companies like Apple where we've done joint innovation together.
But we've built deep partnerships with Google, Amazon, Microsoft, IBM, Oracle and others. We also have them with Salesforce. And it's just there are a number of partnerships that we believe are going to be incredibly important to us to help our customers actually realize the possibility that they have ahead of them over the next few years. We also have undertaken a significant transition in how we approach the customer. And Maria Martinez joined us May, April, May?
April. Actually, she was the President of Customer Success at Salesforce, who had really invented this whole notion of how you build customer success motions and how you support your customers along the life cycle of their journey with your technology and in particular in a software company. So Maria has been we've integrated our services business and she's also bringing this intelligence and experience around how we build capabilities to make sure our customers from the time they get the product, I think it's from what are your three words from choosing it to using it to loving it, right? And so there's a really extensive strategy that Maria has been putting in place. Our entire teams are behind it.
Irving is working on a lot on the operational side to make it happen. David is working on how we build our products with the appropriate telemetry coming out of the cloud, so that we know more about how our customers are using them. This is going to be a critical, critical part of our success in the future, and it's super important. So I want to make sure you're aware that this transformation is actually underway right now. And the final thing is, in the spirit of our this reamplification of our culture and our louder commitment and our more vocal activities around the world and about the things we care about, we wanted to launch a campaign that sort of brings us back to our roots.
And if you remember, our logo is built is created after the Golden Gate Bridge, right? That's what it was originally modeled after. We transitioned that logos many years ago to look like a digital bridge. And so we thought it would be appropriate and you may have seen some of this, you may see some of this around, but we basically launched a campaign recently that talks about not only what we want to do for our customers, but what we want to do for people all around the world. And so our view is that we build bridges between hope and possibility.
And that's for both our customers and it's for those 10,000,000 students that we're going to educate over the next 5 years and everything else that we're trying to do on a global basis. So you may see this and that's the background on it. So with that, I will wrap up by just saying, I think we're executing incredibly well. David and Amy and the team have really done a phenomenal job of accelerating the pace of innovation. We're aggressively transitioning to this software model.
We are helping our customers truly navigate the complex worlds that they live in. The real amazing thing is that 4 or 5 years ago, our customers were transitioning to the cloud in hopes of simplicity and now they find themselves operating in a more complicated world than they ever have. And we are key to helping them simplify this new world that they're moving into. And then most importantly for all of you, we're committed to driving long term value creation and maximizing shareholder value by growing our EPS, grow it through cash flow generation and we'll continue to deliver the results that you've come to expect from Cisco. So with that, I'm going to pause.
And Marilyn, I think we're going to do Q and A now. Thank you. Evan, you're ready to answer questions?
Yes.
All right, Chuck. Our first question is in regards to repatriation. You were able to bring back all your cash from overseas last year. What has Cisco done with all the cash to increase the returns for shareholders?
Where's that slide? Let me go back here. So first of all, I want to compliment Kelly and the team, because we were more prepared when that went down than probably any company in the United States. And how long before we had our cash back, Kelly? The next quarter.
So if you look at the last bar on the repurchases and you look at the dividend increase, these are 2 of the significant things that we've done. We don't run a business that's actually capital intensive. I think we spend $1,000,000,000 a year in CapEx. So the use of our capital really is around buying down our shares, raising our dividend and doing strategic acquisitions where we see the opportunity. And we have been very clear that those are the 3 ways that we would use the capital and I think that's what we've executed against over the last year or since we have repatriation.
Great. Thank you, Chuck. The next question is around tariffs. And do you think Cisco's business will be hurt by the tariff situation?
I'll never get this question. Well, so in the round of tariffs that were the $200,000,000,000 that were implemented in the last phase, the 10%, we had a significant portion of our portfolio that was impacted by that. And we had stated on our last earnings call that our approach was threefold: continue to try to communicate with the administration to help them understand the impact, because most of the tariffs on networking companies are not affecting any Chinese companies because most of the Chinese companies don't sell this technology in the United States. So it's only affecting U. S.
Companies that actually manufacture in China. So we're trying to continue to educate and try to talk to the administration. The second is, as we always do, we continue to optimize our supply chain, which the teams have been working on. And then we said beyond that, we were going to pass it through because to us, it's a tax. And so we the week that the tariffs were implemented, our teams updated our pricing on Saturday night when we do our global pricing adjustments and that was it, pretty seamless.
Now if they continue to escalate, then I think that there's a broader potential macroeconomic risk And hopefully, some of the positive signs that we've seen between U. S. And China and some of the things that we've seen in the press recently, the fact that they delayed and they've given themselves 90 more days to negotiate it are all good signs and we hope that this thing ends in a good place.
Thank you for that. Our next question is regarding security. And what is Cisco doing to ensure customers are not a victim of cybersecurity crimes?
Everything we can. It's a complicated world and this the move that our customers are making as they consume cloud services and other software services, it just fundamentally changes how they have to think about security because what they've been able to do in the past is they bring all their traffic to a central location and then I can pass it through a firewall because I have a single ingress and egress point for my data flows. That doesn't exist anymore. They have data originating at the edge of their networks and their branches that's going to 150 different places. So what it's done for us is created an opportunity to build the next generation that spans from the endpoint to the email, to their email, that spans from the endpoint to the email, to their email, to the network, to the cloud.
And we've delivered internal innovation as well as made some strategic acquisitions. And I think today, the industry is realizing in a way that they haven't in the past that the architecture that we've been building to is actually where our customers are going to go. Just to give you a data point, our technology today blocks 20,000,000,000 threats per day on behalf of our customers. And my guess is that number is even higher because we've been using that stat for close to a year now. So we're we have a high degree of efficacy, but it's an ongoing battle.
As David said, it's the only part of our business where we have an active adversary. So it's a little more complicated than the rest of it.
Thank you, Chuck. The next question states everyone talks about open boxes or open switches. What's our take on this?
I'm assuming that's white box or commodity hardware. It's there are certain customers that have taken the approach to leverage commodity hardware and build their own software because they have very unique requirements in their software layer. If you look at the number of features that we have in our products based on the broad needs that our customers have and the performance requirements that we have, most of our customers, in fact 99% of our customers are still looking for integrated systems. The reality is that in our enterprise customers, the IT organizations that we have sold to historically, they are no longer being measured on how well they integrate technology together. They're not success for them is not viewed as glue all this technology together and just make this place work.
Their value to the organization is now being reflected in how strategic they are being in helping the organization understand how their strategy needs to evolve based on what technology can accomplish. So the last thing they want to do is spend their time piecing technology together, because the business is trying to move fast and the business believes the business understands that technology doesn't enable your strategy anymore. Technology defines your strategy now. So the IT organizations are not interested in decoupling more technology. They're actually trying to get technology that comes in the door working more effectively together.
So we've actually seen the opposite occur in the enterprise accounts and we think that will continue. The real thing our customers also see is that there was a lot of discussion around the upfront capital costs and is a white box cheaper. Here's the reality. For our customer, they spend $1 buying the product and they spend $15 to $20 managing it and running it over the life of the product. So the upfront cost is actually the easy part.
So what we're trying to do right now in a lot of our innovation is actually going towards helping them reduce that $20 and try to actually pull some of that spend into our addressable market. And that's part of what Dave and the team have been building towards.
So it doesn't look like we have any other specific questions. I have one last one here. What excites you about Cisco's future in the near term and long term?
I think that the things that's exciting, number 1, is there's a lot of excitement in the company right now. There's an incredible energy right now and positive energy about what we're doing. I think from a technology perspective, the thing to understand is these big franchises, our enterprise networking franchise, the work our teams have done in data center and some of the work that's coming in our service provider portfolio, these we're in the early stages of multiyear transitions for our customers. And we have a lot of execution that we have to deliver on. We have a lot of things we have to do right from here forward.
But I think we've proven that the strategy is the right one. Now it's just down to real solid execution. And usually, when we get to a point where our success is based on our execution, we do pretty well. The other thing that while we're executing on that, the other thing I feel really good about is that the team has is doing some great work on other strategic areas of potential growth for us in the future that we'll continue to look at as well. So I'm excited about the work we're doing in our core businesses and the ramp that we believe they have relative to what our customers are going to do over the next few years as well as some of the work that we're doing in new markets and things that we may do for customers in the future.
So with that, I want to just thank everybody for spending time with us today. Thanks for your commitment as a shareholder. I want to thank our Board for all their support and our leadership team for all the hard work. And hopefully, we'll see some of you throughout the year. If not, we'll see you back here next year.
Thanks.