Cisco APJC biz pulls down global revenue and net income

Growth in security and data center businesses did not assist Cisco to book growth in revenue and profit in Q4 FY 2014.

The enterprise networking vendor posted 0.5 percent dip in Q4 FY 2014 revenue to $12.04 billion with net income dropping 1 percent to $2.2 billion.

Cisco said its revenue in FY 2014 decreased 3 percent to $47.1 billion and net income nosedived 21.3 percent to $7.9 billion.

Main highlights of Cisco revenue was the dip in APJC business and its failure to recoup in service provider income.

Cisco segment wise revenue in Q4 2014

Cisco revenue in Q4 FY 2014

On geographical basis, revenue from Americas increased 2 percent, EMEA rose 2 percent, while APJC decreased 7 percent.

Segment wise, Cisco said enterprise revenue rose 9 percent, public sector nil growth, commercial grew 8 percent and service provider dipped 11 percent.

In terms of Cisco products, switching dipped 4 percent, NGN routing decreased 7 percent, service provider video dropped 10 percent, collaboration declined 4 percent, other products fell 21 percent, while data center rose 30 percent, wireless up 1 percent, security increased 29 percent and services grew 5 percent.

Cisco chairman John Chambers during an analyst call said that U.S. orders grew 5 percent. US Commercial & US Enterprise rose 17 percent and 16 percent respectively. The company noted continued relative stabilization across Europe. UK grew 6 percent, Germany grew 16 percent. Cisco is seeing success in commercial and enterprise.

Cisco revenue on geographical basis Q4 FY 2014

Inc Routing, NCS 6000 and CRS-X continued to ramp up with each product crossing $100 million orders for FY 2014.

In Switching, Catalyst 3850 continues to grow well at over 80 percent in revenue in Q4.

For ACI and Nexus 9K, customers tripled to more than 580 since end of Q3 2014, said Cisco.

APIC received 60 paying customers in less than 1 month of availability.

Cisco UCS has more than 36,500 customers. It achieved 18th consecutive quarter of market share gains.

Out of Security revenue that grew 29 percent, network security up 35 percent and content security up 12 percent.

Pix source: Cisco

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