Cisco sees routing revenue dip 8% due to timing of large deals

Cisco's routing segment is in a bit of limbo as the vendor reported that fiscal first quarter revenue declined 8 percent to $1.8 billion due to the timing of some of the orders it has from its key customers.  

Speaking to investors during its first quarter earnings call, Chuck Robbins, CEO of Cisco, said that despite the first quarter hit, he expects routing to rise in the coming quarter.

"We did see routing decline 8 percent," Robbins said during the first quarter earnings call, according to a Seeking Alpha transcript. "We do expect routing revenue to return to growth due to timing of large deals we saw in Q1."

Robbins said that the upcoming introduction of a number of new routing platforms and other existing platforms will give it a good growth runway for the segment.

"Our new routing platforms, the new platforms that we've introduced were up in triple-digits again from an orders perspective," Robbins said. "So we do expect that that will bounce back. And ... we also have some new introductions that will be coming out in the next week or so, so you'll see that. So we feel pretty reasonably well about our routing performance over the coming quarters."

Cisco reported that its service provider segment grew 6 percent, while its enterprise segment declined 3 percent and commercial grew 7 percent.

Robbins said that "we're very pleased with our performance there," adding that "we've had the second quarter in a row of growth."

From a geographic perspective, the Americas region grew 1 percent, while EMEA and Asia-Pacific grew 3 and 9 percent, respectively. Total emerging markets grew 11 percent, with the Brazil, Russia, India, and China (BRIC) region, South Africa and Mexico accelerating to 21 percent growth.

The vendor reported $12.7 billion in total revenue, up 4 percent, beating analyst expectations of $12.65 billion.

Likewise, first quarter net income rose 33 percent to $2.43 billion, or 48 cents per share.

For more:
- here's the earnings release
- and the earnings transcript
- Reuters has this article

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