Cisco Posts Strong Growth in Income but Guidance Cites Macro Economic Uncertainty

Cisco reported first quarter revenue of $12.7 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.4 billion or $0.48 per share, and non-GAAP net income of $3.0 billion or $0.59 per share. Revenue was up 3.6% compared to the same period last year, while net income rose by 33%.

“Q1 was a very strong quarter. 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, Cisco chief executive officer. “We guided to solid growth in Q2. Our guidance reflects lower than expected order growth in Q1, driven largely by the uncertainty of the macro environment and currency impacts. Despite these headwinds, I believe we are executing very well. We are moving very fast to capture new opportunities and I feel good about how we are positioned for the second half of the year.”

Some highlights:

• Product revenue increased by 4% and service revenue increased by 1%. 
• Total revenue by geographic segment was: Americas up 4%, and each of EMEA and APJC up 3%. 
• Product revenue growth was led by Data Center and Collaboration at 24% and 17%, respectively. 
• Wireless and Security each grew 7%, Switching grew 5%, NGN Routing decreased 8%, and Service Provider Video decreased 2%.
• By product orders per customer segment, Enterprise (3%), Public Sector (0%), Commercial 7%, Service Provider 6%.  Overall 3%.
• By product orders geographically, Americas 1%, EMEA 3%, APJC 9%. Cisco total 3%.
• Cash and cash equivalents were $59.1 billion, up from $52.1 billion a year ago.
• Cisco headcount was 72,063, which is about the same as a year ago.

http://investor.cisco.com/investor-relations/news-and-events/news/news-details/2015/Cisco-Reports-First-Quarter-Earnings/