The first quarter revenue of Cisco dipped 1.8 percent to $12.1 billion. Its net income decreased 4.6 percent to $2 billion.
Cisco enterprise grew 2 percent and commercial grew 1 percent. Public sector declined 1 percent.
Cisco switching business performed well with growth of 3 percent.
Wireless revenues rose 8 percent with stronger gross margin.
NGN routing revenue was down 1 percent. Cisco saw declines in the quarter as we managed the product transitions in that business. Cisco shipped a new NPS platform to its first customer this quarter and continues to manage the transition of our CRS platform to the CRS-X.
ASR 9000 had another record revenue quarter with growth constantly about 20 percent. But Edge performance was impacted by declines in traditional products, in both the Core and Edge Cisco is focused on migrating programs that will drive upgrades to the new platforms over the coming quarters.
Cisco saw decline in ASR 5000 mobility revenues due to timing of large orders. SP video revenues of $987 million declined 14 percent.
Cisco data center business grew 44 percent, as customers continue to adopt its unified computing systems. Converged solutions from NetApp, FlexPod and EMC, VMware, Vblock are now each running at over a $1 billion run rate for their total business.
These solutions are fueling Cisco’s data center growth across all segments and regions. UCS is one of the best examples of its portfolio of an architectural approach, delivering differentiated value to customers and driving market success, Cisco said.
Security revenues grew 8 percent, with particular strength in network security, up 12 percent.
Cisco collaboration revenue was up 1 percent. Unified communication revenue declined by 3 percent as Cisco moved to a different revenue model in the business, increasing the amount of business which is reoccurring.
Conferencing revenue grew 12 percent and Telepresence revenue grew 1 percent. Services revenue grew 4 percent. The technical services were up 4 percent and advanced services up 5 percent.
Cisco was hit by STB business.
Cisco CEO John Chambers during an analyst call said: “Our headcount grew less than 100 from the end of the fiscal year to 75,136. This reflects the addition of over 850 employees from the Sourcefire and Composite Software acquisition, offset by our workforce rebalancing that we announced in our Q4 FY ‘13 earnings call. The workforce reduction plan provides us the ability to invest in key growth areas such as cloud, data center, mobility, services, software and security to effectively manage our business for the long-term.”
