Cisco Q1 FY 2015 revenue up 1.3%, net income dips 8.4% to 1.8 bn

Networking company Cisco today said its Q1 fiscal 2015 revenue rose 1.3 percent to $12.2 billion, while net income dropped 8.4 percent to $1.8 billion.

Cisco India revenue in Q1 fiscal 2015 increased 6 percent.

Cisco said its first quarter revenue contribution from Switching was 31 percent, NGN Routing 16 percent, Collaboration 8 percent, Service Provider Video 7 percent, Data Center 6 percent, Wireless 5 percent, Security 4 percent and others 1 percent.

Cisco Q1 FY 2015 revenue break-up product-wise

The networking company said revenue from Americas was $7,501 million including $5,684 million from products and $1,817 million from services, Europe’s $3,002 million revenue came from $2,396 million from products and $606 million from services and Asia Pacific Japan China chipped in $1,742 million revenue with $1,355 million from products and $387 million from services.

During the current quarter, Cisco expects revenue to rise 4 to 7 percent, compared to a 8 percent expected rise.

Cisco continues to bet on its strategy on delivering solutions for IT and the Internet of Everything.

Cisco chairman and CEO John Chambers said: “We continue to make progress towards becoming the #1 IT company in the world. We are still in a tough environment, but seeing encouraging trends as cities, businesses, governments and schools are becoming more digitized.”

Cisco growth in Q1 fiscal 2015

Cisco’s Q1 revenue growth was impacted by poor performance by service provider segment and the Asia Pacific Japan China region including India. Cisco does not share country specific revenue details.

While revenue from America and EMEA grew 2 percent and 6 percent, respectively, revenue from APJC dropped 12 percent. EMEA growth was supported by UK up 20 percent, Germany up 6 percent and Southern Europe grew approx. 20 percent.

Cisco revenue from Latin America grew 5 percent. The Asia-Pacific, Japan and China region declined 12 percent led by China down to 33 percent while India grew 6 percent. The remaining emerging countries in Asia declined 15 percent. Overall, emerging countries within the 3 geographies declined 6 percent.

The BRICS plus Mexico were down 12 percent while the other emerging countries actually grew 1 percent.

Cisco’s service provider revenue dipped 10 percent, while other segments grew including enterprise 2 percent, public sector 13 percent and commercial 5 percent.

The following segments grew for Cisco during the first quarter: switching 3 percent, data center 15 percent, wireless 15 percent, security 25 percent. The following segments decreased: NGN routing 4 percent, collaboration 10 percent, SP video 12 percent and others 16 percent.

Baburajan K
editor@infotechlead.com