Cisco Systems reported second quarter revenue of $12.7 billion (+6 percent), net income of $3.0 billion or $0.71 per share.
Cisco, one of the leading suppliers to mobile network operators, said total revenue was up 6 percent at $12.7 billion, with product revenue up 9 percent and service revenue down 1 percent.
Cisco generated second quarter revenue of $5.89 billion (+7 percent) from network business, $1.06 billion (–9 percent) from hybrid work, $883 million (+7 percent) from security, $180 million (+12 percent) from optimized application experience business
Cisco’s revenue by geographic segment was: Americas up 3 percent, EMEA up 11 percent, and APJC up 13 percent. Product revenue performance was led by growth in Secure, Agile Networks up 7 percent, Internet for the Future up 42 percent, Security up 7 percent, and Optimized Application Experiences up 12 percent. Hybrid Work was down 9 percent.
Acquisitions
Cisco closed the acquisition of replex GmbH, a privately held enterprise software company based in Germany in the second quarter of fiscal 2022. In addition, Cisco announced intent to acquire Opsani, a privately held enterprise software company.
“We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Cisco’s innovation,” said Chuck Robbins, chair and CEO of Cisco. “Our robust order strength, record backlog and double-digit growth in annual recurring revenue position us well to deliver growth.”
The company, which sells routers, switches, security services and software products, has been investing in its cloud offerings to keep up with the pandemic-fueled surge in demand for its videoconferencing platform Webex, virtual private network and cybersecurity products.
Cisco is reportedly making a $20 billion bid for Splunk, which makes software for searching and monitoring big data gathered from various sources such as websites, applications and devices.
Cisco said revenue is expected to grow between 5.5 percent and 6.5 percent, tighter than its prior forecast of 5 percent to 7 percent.
