Wednesday, August 13, 2014

Cisco Hits Revenue of $12.4 billion -- Flat Year over Year

Cisco reported quarterly revenue of $12.4 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.2 billion or $0.43 per share, and non-GAAP net income of $2.8 billion or $0.55 per share for the period ended July 26, 2014. The earnings came in slightly ahead of market expectations.  The company also announced plans to reallocate or trim some 6,000 jobs in the coming quarters.

"We are executing well in a tough environment and delivered our best non-GAAP earnings per share quarter in our history. I'm pleased with how we are transforming our company over the past several years and that journey continues," stated John Chambers, Cisco chairman and chief executive officer. "We are focused on growth, innovation and talent, especially in the areas of security, data center, software, cloud and internet of everything. Our strategy is sound, our financials are strong, and our market leadership is secure. We have the team in place to deliver and are uniquely positioned to help our customers solve their biggest business problems."

Some highlights from the quarterly conference call:

  • FY’14 revenue amounted to $47.1 billion
  • U.S. orders grew 5% y/y, UK grew 6% y/y, and Germany grew 16% y/y.  However, emerging markets were weak.
  • Cisco cited strong traction for its Application Centric Infrastructure (ACI) initiative, saying it is now shipping its APIC and has over 60 paying customers.  The Nexus Nexus 9K is doing well -- customers tripled to more than 580 since end of Q3.
  • Data Center revenue grew 30% y/y.  The Cisco UCS product line now has more than 36,500 customers and has recorded 18th consecutive quarters of market share gains.
  • NCS 6000 and CRS-X continued to ramp…each product crossing $100M orders for FY1