Cisco has posted revenue of $12.5 billion (+4 percent) with net income of $2.7 billion (+7 percent) and operating expenses of $4.6 billion (+6 percent) in Q3 fiscal 2017-18.
Cisco is targeting 4-6 percent revenue growth in Q4 fiscal 2017-18.
“We are executing well against our strategy, our innovation pipeline has never been stronger, and we continue to make great progress in transforming towards more software and subscriptions,” said Chuck Robbins, Chairman and CEO, Cisco.
Cisco’s research and development (R&D) expenditure in Q3 was $1.6 billion. Cisco’s sales and marketing expenditure was $2.3 billion.
Cisco has generated $7.163 billion (+2 percent) from Infrastructure Platforms, $1.309 billion (+19 percent) from Applications, $583 million (+11 percent) from Security and $3.2 billion (+3 percent) from services.
TBR research analyst Kelly Lesiczka said Cisco is transitioning from a hardware company to an IT solutions provider with a services-led approach. Maria Martinez, a seasoned customer experience professional from Salesforce, took a newly created position at Cisco – Chief Customer Experience Officer – and will also lead Cisco Services.
The announced acquisition of Accompany in May will add AI technology and talent to Cisco’s collaboration solutions portfolio and enhance customer experience, which is a growth initiative for Cisco.
“Cisco Services will gain opportunities around advisory, implementation and optimization services for the new capabilities gained from the acquisition of Accompany,” Kelly Lesiczka said.