Cisco revenue stabilizes in Q3, India up 18%

Cisco CEO Chuck Robbins blog
Enterprise networking major Cisco has posted revenue of $12 billion, while its net income reached $2.3 billion in Q3 2016.

Cisco’s revenue was $12.1 billion, while net income was $2.4 billion in Q3 2015.

Cisco said revenue from emerging markets grew 4 percent with the BRICs plus Mexico growing 4 percent.

Revenue from China increased 22 percent, while Cisco India revenue rose 18 percent.

Brazil and Russia continue to be challenging now combine representing less than 2 percent of our total product booking, said Cisco.

Announcing the third quarter results for the period ended April 30, 2016, Cisco CEO Chuck Robbins said: “We’re making in transitioning our business to a more software and subscription focus, which we’ll continue to apply across our entire portfolio.”

Cisco’s revenue — excluding SP Video CPE business — increased 4 percent to $7,062 million in Americas, fell 2 percent to $3,001 million in EMEA, and grew 10 percent to $1,937 million in Asia Pacific Japan and China in the third quarter of fiscal 2016.

Cisco sold its SP Video CPE Business during the second quarter of fiscal 2016. Cisco’s SP Video CPE Business generated revenue of $1,359 million for the nine months ended April 30, 2016.

Cisco revenue from main divisions

Cisco posted revenue growth of 17 percent to $482 million in Security.

Cisco said its revenue rose 10 percent to $1,069 million in Collaboration.

Cisco clocked 18 percent growth to $468 million in SP Video.

Cisco’s wireless business increased 1 percent to $615 million.

Data center revenue of Cisco grew 1 percent to $811 million.

Switching revenue of Cisco dipped 3 percent to $3,447 million.

NGN routing revenue of Cisco fell 5 percent to $1,894 million.

The 3 percent decline in switching was driven by macro related weakness in campus business offset by growth in data center switching.

Routing experienced 5 percent decline driven by the high-end. Cisco sale to the top 10 web scale customers was up 31 percent.

Collaboration grew 10 percent by strength across the entire portfolio. WebEx achieved double digit growth with performance in Telepresence and Unified Communications.

Data center grew 1 percent with the slower growth driven by macro challenges impacting customer spend.

Wireless grew 1 percent led by double digit growth in cloud based Meraki platform partially offset by declines in controller and access point businesses.

Cisco achieved 100 percent growth in advanced threat security business revenue and 50 percent in web security solution.

Cisco acquisitions in Q3

Cisco has made 5 acquisitions — Jasper Technologies, Acano, Synata, Leaba and CliQr in the third quarter.

Cisco acquired Jasper Technologies, a provider of cloud-based Internet of Things (IoT) service platform to help enterprises and service providers launch, manage and monetize IoT services on a global scale.

Acano provides on-premises and cloud-based video infrastructure and collaboration software.

Synata will enable Cisco to deliver search capabilities for collaboration cloud applications.

Leaba is a fabless semiconductor company that can accelerate Cisco’s next generation product portfolio and bring new capabilities to the market faster.

CliQr provides an application-defined cloud orchestration platform that is expected to help Cisco customers simplify and accelerate their private, public and hybrid cloud deployments.

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