Wednesday, May 14, 2014

Cisco Beats Estimates with Quarterly Revenue of $11.5 Billion

Cisco reported third quarter revenue of $11.5 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.2 billion or $0.42 per share, and non-GAAP net income of $2.6 billion or $0.51 per share. Revenue was down 5.5% compared with the same period last year, while net income declined 12% compared to last year.

"I'm pleased with our performance in Q3. Our financial results exceeded the guidance we provided last quarter as we demonstrated clear progress on returning to growth. The entire team is focused on moving Cisco forward aggressively and we remain confident in our long-term goal to be the #1 IT company," stated John Chambers, Cisco chairman and chief executive officer.

Some highlights:

  • Total US orders grew 7% y/y, while U.S. commercial and US enterprise orders were both up 10% y/y.  However, emerging markets continued to be challenged with orders declining (7%) y/y.  BRIC+M orders were down (13%) y/y.
  • Customer reception for the new Application Centric Infrastructure architecture is "very strong."  It will take several quarters before high-end switching really begins growing. There were 175 customers for the Nexus 9000 and the pipeline is close to 1,000.
  • Data center revenue overall grew 29% y/y.  The UCS product line experienced its 17th consecutive quarter of market share gains
  • Sourcefire fuels security revenue up 10% y/y; orders up 20% y/y.
  • Service Provider orders declined (5%) y/y, which is up from a (12%) decline in Q2.
  • ASR 9000 revenue grew 59% y/y. 
  • Switching revenue declined (6%) y/y; switching gross margins remain strong.

See also