Cisco CEO John Chambers today announced the financial results for the third quarter of fiscal 2015 — promising a better future for the networking supplier under the new CEO.
Cisco said its Q3 revenue increased 5 percent to $12.1 billion, while net income grew 11.7 percent to $2.4 billion.
The enterprise networking supplier said its revenue increased 8 percent in Americas, rose 2 percent in EMEA, and fell 1 percent in APJC.
Its head count increased by approximately 800 to 70,951, reflecting investments in key growth areas such as security, cloud, and software.
“Competitors selling low-cost technology building blocks can’t compete with our total cost advantage, operational efficiency, security, and speed to results that Cisco provides,” said Chambers.
“Our vision and strategy are working as every company, city, and country becomes digital. They are realizing Cisco is best positioned to help them as they become digital organizations,” said Chambers.
Cisco revenue from switching rose 6 percent, NGN routing grew 4 percent, wireless increased 9 percent, security growth was 14 percent, collaboration revenue up 7 percent and services revenue grew 3 percent.
The Nexus 3000 plus Nexus 9000 grew 144 percent. Cisco added 970 new Nexus 9000 customers and ACI customers to reach 2,650 customers. The 8-bit controller customers grew from 300 last quarter to 580 this quarter. Nexus 9000 orders plus ASIC grew sequentially 27 percent.
In its data center business, UCS momentum continues with over $3 billion in revenue run rate, with over 43,800 UCS customers. The number of repeat UCS customers grew 34 percent. Cisco is the market share leader in x86 blades in the U.S. and the number two player worldwide, with more than 85 percent of the Fortune 500 companies now investing in UCS.
NGN routing grew 4 percent. High-end routing increased 5 percent with CRS-X and NCS growing over 200 percent.
Wireless achieved a growth of 9 percent. Meraki increased 92 percent – droving most of its growth in the wireless category. Cisco noticed some softness in the public sector wireless spending, driven primarily by E-Rate funding timing.
Security growth rebounded to a strong 14 percent, with orders growing even faster. Customers are realizing that dozens of security vendors hinder business by not solving their challenges.
Bright future for Cisco
The enterprise networking equipment maker says it is seeing many areas of strength, including 7 percent grow in enterprise order, 6 percent growth in commercial orders, and 7 percent growth in public sector orders.
Service provider orders globally decreased 7 percent and U.S. service provider orders declined 17 percent. Emerging market orders were flat, with the BRICs plus Mexico down 6 percent, while the remaining emerging markets grew 6 percent.