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2006 Annual Report 25
Net Product Sales by Theater
The following table presents the breakdown of net product sales by theater (in millions, except percentages):
Years Ended July 30, 2005
Variance
in Dollars
Variance
in Percent July 30, 2005 July 31, 2004
Variance
in Dollars
Variance
in PercentJuly 29, 2006
Net product sales:
United States and Canada $ 12,601 $ 10,511 $ 2,090 19.9% $ 10,511 $ 9,116 $ 1,395 15.3%
Percentage of net product sales 52.7% 50.4% 50.4% 49.1%
European Markets 5,339 5,050 289 5.7% 5,050 4,703 347 7.4%
Percentage of net product sales 22.3% 24.2% 24.2% 25.4%
Emerging Markets 2,296 1,665 631 37.9% 1,665 1,347 318 23.6%
Percentage of net product sales 9.6% 8.0% 8.0% 7.3%
Asia Pacific 2,550 2,243 307 13.7% 2,243 2,039 204 10.0%
Percentage of net product sales 10.7% 10.8% 10.8% 11.0%
Japan 1,131 1,384 (253) (18.3)% 1,384 1,345 39 2.9%
Percentage of net product sales 4.7% 6.6% 6.6% 7.2%
Total $ 23,917 $ 20,853 $ 3,064 14.7% $ 20,853 $ 18,550 $ 2,303 12.4%
Net Product Sales by Groups of Similar Products
The following table presents net sales for groups of similar products (in millions, except percentages):
Years Ended July 30, 2005
Variance
in Dollars
Variance
in Percent July 30, 2005 July 31, 2004
Variance
in Dollars
Variance
in PercentJuly 29, 2006
Net product sales:
Routers $ 6,005 $ 5,498 $ 507 9.2% $ 5,498 $ 5,406 $ 92 1.7 %
Percentage of net product sales 25.1% 26.4% 26.4% 29.1%
Switches 10,833 9,950 883 8.9% 9,950 8,838 1,112 12.6 %
Percentage of net product sales 45.3% 47.7% 47.7% 47.7%
Advanced technologies 6,228 4,634 1,594 34.4% 4,634 3,530 1,104 31.3 %
Percentage of net product sales 26.0% 22.2% 22.2% 19.0%
Other 851 771 80 10.4% 771 776 (5) (0.6)%
Percentage of net product sales 3.6% 3.7% 3.7% 4.2%
Total $ 23,917 $ 20,853 $ 3,064 14.7% $ 20,853 $ 18,550 $ 2,303 12.4 %
Gross Margin
The following table presents the gross margin for products and services (in millions, except percentages):
AMOUNT PERCENTAGE
Years Ended July 29, 2006 July 30, 2005 July 31, 2004 July 29, 2006 July 30, 2005 July 31, 2004
Gross margin:
Product $ 15,803 $ 14,095 $ 12,784 66.1% 67.6% 68.9%
Service 2,944 2,576 2,342 64.5% 65.2% 67.0%
Total $ 18,747 $ 16,671 $ 15,126 65.8% 67.2% 68.6%
The following table presents the gross margin for each theater (in millions, except percentages):
AMOUNT PERCENTAGE
Years Ended July 29, 2006 July 30, 2005 July 31, 2004 July 29, 2006 July 30, 2005 July 31, 2004
Gross margin:
United States and Canada $ 10,234 $ 8,784 $ 7,838 64.8% 66.1% 67.4%
European Markets 4,057 3,916 3,661 66.7% 68.8% 69.4%
Emerging Markets 1,682 1,267 1,019 67.9% 70.2% 70.3%
Asia Pacific 1,861 1,671 1,532 65.2% 67.2% 68.7%
Japan 913 1,033 1,076 70.7% 68.0% 73.9%
Total $ 18,747 $ 16,671 $ 15,126 65.8% 67.2% 68.6%
Management’s Discussion and Analysis of Financial Condition and Results of Operations