Cisco reported revenues of USD 12.0 billion for its fiscal third quarter to April, up 3 percent from a year ago after excluding the sale of its set-top box business. Including this, sales were down 1 percent. The result was in line with its guidance, and a "strong performance in a challenging environment", said CEO Chuck Robbins. The company's gross margin rose to 64.3 percent from 61.6 a year ago, helped by the sale of the STB business. Operating profit was up 2 percent to USD 3.0 billion, while net profit fell 4 percent to USD 2.3 billion, and EPS declined 2 percent USD 0.46.
Revenue growth was strongest in Asia at 10 percent, and sales rose 4 percent in the Americas, but sales were down 2 percent in the EMEA region. Cisco's main product groups Switching and Routing posted sales down 3 percent and 5 percent respectively, but the segments Security, Collaboration and SP Video continued to show double-digit growth, up 17 percent, 10 percent and 18 percent, respectively. Wireless and Data Centre products increased by 1 percent.
For fiscal Q4, Cisco revenues flat to 3 percent higher year-on-year. The adjusted gross margin is estimated at 63-64 percent, and EPS is expected to total USD 0.48-0.53.
