Wednesday, August 12, 2015

Cisco Posts Record Revenues, up 4% YoY in Latest Quarter

Cisco reported fourth quarter revenue of $12.8 billion  (increase of 4% year over year) , net income (GAAP) of $2.3 billion or $0.45 per share, and non-GAAP net income of $3.0 billion or $0.59 per share.

"I'm stepping into the CEO role at an incredibly exciting time for Cisco. We closed out our fiscal year with record revenues and record non-GAAP EPS, for both Q4 and FY15. I'm particularly pleased with the strong growth of deferred revenue which shows we are very effectively driving our business to a more predictable software-based business model, at the same time as growing revenues and earnings," said Chuck Robbins, Cisco chief executive officer.

Some highlights for the quarter:
  • Product revenue and service revenue each increased 4%. 
  • Sales of Nexus 3K, 9K and ACI amounted to $438 million for the quarter, up 100% YoY and 50% sequentially
  • Nexus 9K added 1,400 customers in the quarter for a total of 4100 customers
  • 26 out of the top 28 largest enterprise customers are now 9K customers, with 30% of the customers being new 9K customers in Q4
  • Core routing sales are now growing at a triple digit pace and Cisco believes it has solidified its lead in this market
  • Meraki's cloud based model is succeeding and is now on a billion dollar annual run rate
  • In terms of total revenue by geographic segment, Americas was up 7%, while both EMEA and APJC were flat. 
  • Product revenue growth was led by Collaboration and Data Center at 14% each. 
  • Service Provider revenue was up 2%
  • Switching and NGN Routing grew by 2% and 3%, respectively.
  • Gross Margin -- On a non-GAAP basis, total gross margin and product gross margin were 62.1% and 61.0% respectively

See also