Cisco's fiscal Q4 revenues get boost from data center equipment, IP router sales
Cisco (Nasdaq: CSCO) on Wednesday reported that its fiscal Q4 2012 earnings rose 4 percent year-over-year to $11.7 billion.
Click here for selected slides from Cisco's earnings presentation.
The company said that the majority of the revenue growth came from the sales of three key product segments: IP routers, wireless, and data center equipment.
IP router revenue rose 4 percent year over year to $2.09 billion, while wireless and data center equipment rose 22 and 90 percent respectively, to $494 million and $415 million. However, switching revenue remained flat at $3.6 billion.
Net profit, meanwhile, for the three months ended on July 28 increased 56 percent year-over-year to $1.9 billion, while EPS was up 64 percent to $0.36.
"As a result of our strong performance, continued execution on our plan to deliver profitable growth, and commitment to shareholders, for the full fiscal year, we delivered revenue growth of 7% as well as a record year in revenue and earnings per share," said Cisco Chairman and CEO John Chambers in the earnings release.
From a regional perspective, Cisco said order growth was led by a 12 percent increase in Asia, while orders in the Americas region rose 4 percent, and the EMEA region declined 6 percent.
On the customer end, enterprise led the way with a 6 percent increase, while service providers orders declined 1 percent during the quarter due to tighter spending budgets.
A challenging economic environment and slower sales in some segments has driven Cisco to make some drastic changes. In July, the vendor laid off 1,300 employees, or about 2 percent of its workforce, a move it says is designed to cut costs and simplify its overall structure.
While the layoffs were part of an ongoing restructuring process, the vendor did make at least two key acquisitions to enhance its residential network management and cloud services capabilities, including TR-69 software vendor ClearAccess and Virtuata.
Shares of Cisco reached $18.77, up $1.42, or 8.18 percent, on the Nasdaq stock exchange in late morning trading.
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