Cisco sees revenue growth slowing

News Broadband Global 13 NOV 2015
Cisco sees revenue growth slowing
Cisco reported revenues for its fiscal first quarter to October up 3.6 percent year-on-year to USD 12.7 billion, in line with its outlook for 2-4 percent growth. Net profit rose 32.9 percent to USD 2.4 billion, and adjusted EPS was up 9.3 percent to USD 0.59, better than the company's forecast. 

Product revenue increased by 4 percent and service revenue by 1 percent in the first quarter, while revenue in the Americas was up 4 percent and the EMEA and APJC regions each grew 3 percent. Product revenue growth was led by Data Center and Collaboration with growth of 24 and 17 percent, respectively. Wireless and Security each grew 7 percent, and Switching grew 5 percent, while NGN Routing decreased 8 percent, and Service Provider Video decreased 2 percent.

The company's deferred revenue increased by 10 percent in Q1 to USD 15.2 billion. Cisco CEO Chuck Robbins said the company saw lower-than-expected order growth in Q1, hurt by the uncertain macro-economic environment and currency fluctuations. As a result, revenue in fiscal Q2 is expected only flat to 2 percent higher, and adjusted EPS is forecast at USD 0.53-0.55. The outlook excludes the set-top box business, the sale of which to Technicolor should close tin Q2. 

Operating cash flow was up 11 percent to USD 2.8 billion inQ1, leaving Cisco with total cash of USD 59.1 billion at the end of October. The ccompany returned USD 2.3 billion to shareholders through dividends and share repurchases in Q1. 

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