Cisco has released its financial report for the second quarter of fiscal 2018 year, which ended up on January 27th, 2018, reporting a revenue growth of 3 percent, or US $11.9 billion.
This marks a new beginning for Cisco as this is the first time in six quarters that the company managed to report a growth in revenue, hitting US $11.9 billion, or 3 percent higher revenue compared to the same quarter last year, beating earlier Wall Street expectations.
In addition to the higher revenue figures, Cisco was keen to note that 33 percent of total revenue was recurring revenue, which is up by 2 points year-over-year. Cisco also reported a net loss of US $8.8 million, or US $1.78 per share GAAP ($0.63 non-GAAP), with GAAP results including a US $11.1 billion charge related to the enactment of the Tax Cuts and Jobs Act. The non-gap net income was set at US $3.1 billion.
The operating cash flow was reported at US $4.1 billion with US $5.4 billion returned to shareholders. Its GAAP total gross and product gross margins were at 63.1 percent and 61.5 percent, respectively, which is a slight increase in product gross margin compared to the same quarter of last year.
Chuck Robbins, Chairman and CEO at Cisco, was enthusiastic to note that the company had a great quarter, demonstrating their strategy is actually working. He added that: “business is growing, we have a fantastic innovation pipeline, our balance sheet is strong and we have a team that’s executing incredibly well. The network is more critical to business success than ever, and our new intent-based networking portfolio has great momentum including the fastest ramping new product in our history.”
In a blog post over at Cisco, Robbins also said that company’s focus on software and subscriptions drow strong revenue quarter. The heart of the growth is the company’s push for intent-based networking, Cisco’s own software-driven approach to network automation where the company announced quite a few new things recently.
When it comes to products, Cisco’s Catalyst 9000 router has become one of the fastest ramping products in the company’s history, doubling its customer base compared to the last quarter.
Cybersecurity is also one of the big growth areas for the company, with its security department reporting a growth of 6 percent. Cloud-based subscriptions were also something that Cisco’s CEO outlined, which brought both better experiences for customers while its work in applications has helped “power of trillions of terabytes of data across trillions of devices”.
Bear in mind that Cisco has recently acquired AppDynamics and Broadsoft, both companies that had and will have a strong influence on Cisco’s financial reports.
In the next fiscal quarter, Q3 FY 2018, Cisco expects an increase in revenue of 3 to 5 percent, with non-GAAP margin rising to 63 to 64 percent, and earnings per share (EPS) hitting $0.64 to $0.66.
The company has certainly turned its financial tide and hopefully, it will be able to push forward in all markets.