Cisco revenue growth slows in October quarter

News Broadband Global 14 NOV 2013
Cisco revenue growth slows in October quarter
Cisco reported revenues for its fiscal first quarter up just 1.2 percent year-on-year to USD 12.1 billion, while net profit fell 4.6 percent to USD 2.0 billion. Cisco said revenues were less than expected and profits were impact by one-time charges of USD 237 million for job cuts and USD 257 million for the acquisition of the rest of Insieme Networks. Adjusted EPS for the three months to 26 October, excluding the charges, was still up 10.4 percent to USD 0.53. 

On a geographic basis, the company's sales fell in Asia, but grew in other regions. On a product basis, sales of service provider video equipment fell 8 percent, and NGN routing systems were 1 percent lower year-on-year at 2.04 billion. Sales at the main switching business grew 3 percent to USD 3.75 billion, and the data centre operations continued to grow strongly, up 44 percent to USD 601 million. 

With a book-to-bill ratio of less than 1 and product orders down 4 percent in the past quarter, Cisco's revenues may remain under pressure in the current quarter. The company reported product orders down in all regions in fiscal Q1, as well as weaker spending by service providers and the public sector. 

Operating cash flow was up slightly from a year earlier to USD 2.6 billion in the quarter, and Cisco finished October with total cash of USD 48.2 billion. After spending USD 2.0 billion on share repurchases in the quarter, the company authorised another USD 15.0 billion for the buyback programme. 

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