How Cisco achieved 2 percent revenue growth

Cisco revenue in Q2 fiscal 2016Cisco said its second quarter revenue increased 2 percent to $11,834 million, while net income grew 31 percent to $3.1 billion.

“We delivered a strong Q2, and are managing the business extremely well in a challenging macro environment,” said Chuck Robbins, Cisco chief executive officer.

Cisco product revenue rose 2 percent. Cisco service revenue growth was 3 percent.

Cisco revenue increased 1 percent each in Americas and EMEA, 11 percent in Asia Pacific Japan China region. Security revenue increased 11 percent, NGN Routing rose 5 percent, Collaboration grew 3 percent. Wireless was flat while Switching fell 4 percent and Data Center declined 3 percent in its second quarter.

During the second quarter of fiscal 2016, Cisco completed the acquisitions of Portcullis, ParStream, Lancope and 1 Mainstream in the security, data analytics and video markets. These moves are consistent with Cisco’s strategy to increase innovation and R&D investment in growth areas.

Cisco recently completed the acquisition of Acano to help accelerate Cisco’s collaboration strategy to deliver video more broadly.

In addition, on February 3, 2016, Cisco announced its intent to acquire Jasper Technologies, a provider of cloud-based Internet of Things (IoT) software-as-a-service platform.