Cisco has posted 4 percent increase in revenue to $12.7 billion and 32.9 percent increase in net income to $3 billion in its first quarter ended October 24, 2015.
The US-based ICT vendor said its revenue in emerging market increased 11 percent mainly driven by the strength of IT markets in India and Mexico.
Cisco had a very strong quarter in China and India, part of emerging markets, from an orders perspective, growing over 40 percent each. One of the focus areas in India was the country’s digitization efforts presided by Prime Minister Narendra Modi.
Cisco generated $4,022 million (+5 percent) from data center business, $1,793 million (–8 percent) from NGN routing, $1,115 million from collaboration (+17 percent), $859 million (+24 percent) from data center, $850 million (–2 percent) from service provider video, $645 million (+7 percent) from wireless and $485 million (+7 percent) from security business.
Cisco will be targeting 0-2 percent growth in the second quarter of fiscal 2016. Its guidance for the second quarter reflects lower than expected order growth in Q1, driven largely by the uncertainty of the macro environment and currency impacts.
“We are accelerating our ability to deliver on growth opportunities, aggressively driving our cloud business, and delivering continued strength in our deferred product revenue, as we sell more of our portfolio in software and cloud models,” said Chuck Robbins, chief executive officer of Cisco.
The increase in product revenue was 4 percent to $9,844 million, while service revenue increased 1 percent to $2,838 million in the first quarter of fiscal 2016.
Cisco posted revenue of $7,799 million (+4 percent) from Americas, $3,087 million (+3 percent) from EMEA and $1,786 million (+3 percent) from Asia Pacific Japan China region. Cisco does not share its India revenue.
Baburajan K
editor@telecomlead.com
