Cisco Systems (NASDAQ: CSCO) reported Q3 EPS of $0.57, $0.02 better than the analyst estimate of $0.55. Revenue for the quarter came in at $12 billion versus the consensus estimate of $11.97 billion.

"We delivered a strong Q3, executing well despite the challenging environment," said Chuck Robbins, Cisco chief executive officer. "I'm pleased with our performance today as well as the progress we're making in transitioning our business to a more software and subscription focus, which we'll continue to apply across our entire portfolio."

Deferred Revenue -- was $15.3 billion, up 8% in total, with deferred product revenue up 9%, driven largely by subscription-based and software offerings, and deferred service revenue up 7%. Cisco continued to build a greater mix of recurring revenue as reflected in deferred revenue.

Days Sales Outstanding in Accounts Receivable (DSO) -- was 33 days at the end of the third quarter of fiscal 2016, compared with 33 days at the end of the second quarter of fiscal 2016, and compared with 37 days at the end of the third quarter of fiscal 2015.

GUIDANCE:

Cisco Systems sees Q4 2016 EPS of $0.59 - $0.61, versus the consensus of $0.58.