Menu
Security bets pay off as Cisco reports strong financials

Security bets pay off as Cisco reports strong financials

Revenue from vendor's security business rose 12 per cent

Chuck Robbins (Cisco)

Chuck Robbins (Cisco)

Credit: Cisco

Cisco has reported quarterly revenue above Wall Street estimates, driven by growth in the network gear maker's newer businesses such as cyber security.

Revenue from its security business, which offers firewall protection and breach detection systems, rose 12 per cent to US$627 million - eight analysts polled by Reuters had expected revenue of US$615.8 million.

Cisco in August said it would buy cyber security provider Duo Security for US$2.35 billion, the latest acquisition by CEO Chuck Robbins as he steers the company to high-growth areas such as cyber security and Internet of Things to make up for slowing demand for its core business.

“We had a very strong finish to a great year,” said Chuck Robbins, chairman and CEO of Cisco.

“Our results demonstrate a combination of strong customer adoption of our latest innovations, the ongoing value customers see in our software and subscription offerings, and excellent execution across our customer segments and geographies.

“Our strategy is working and we believe that are well-positioned to capture growth across our portfolio with our pipeline of innovation.”

Meanwhile, revenue in Cisco's application software businesses rose 10 per cent to US$1.34 billion.

Revenue in its infrastructure platform division, which houses the company's traditional business of supplying switches and routers, rose seven per cent to US$7.44 billion - eight analysts polled by Reuters had expected revenue of US$7.32 billion.

The company's net income rose to US$3.80 billion, or 81 cents per share, in the fourth quarter ended 28 July, from US$2.42 billion, or 48 cents per share, a year earlier.

“Q4 was another quarter of broad-based strength across our portfolio reflecting our strong execution and momentum,” added Kelly Kramer, CFO of Cisco.

“We are seeing solid demand for our products and solutions while continuing to make progress in transforming our business model and driving long-term shareholder value.”

On an adjusted basis, the company earned 70 cents per share, with total revenue increasing to US$12.84 billion from US$12.13 billion.

Analysts on average had expected a profit of 69 cents per share and revenue of US$12.77 billion - the vendor’s shares rose 2.2 per cent to US$44.85 after the bell.

(Reporting by Munsif Vengattil in Bengaluru; Editing by Sriraj Kalluvila)


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags cisco

Featured

Slideshows

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Meet the winners of the 2020 Reseller News Innovation Awards

Meet the winners of the 2020 Reseller News Innovation Awards

Reseller News honoured the standout players of the New Zealand channel in front of more than 500 technology leaders in Auckland on 21 October, recognising the achievements of top partners, start-ups, vendors, distributors and individuals.

Meet the winners of the 2020 Reseller News Innovation Awards
Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Show Comments