Cisco posts $9bn profits for 2015 after strong Q4

Cisco sees revenues and profits grow

Cisco has posted revenues of $49.2bn for its 2015 fiscal year, up 4.3 percent on 2014, to generate full-year profits of $9bn, a 14.4 percent increase from $7.9bn in 2014.

This increase in revenues and profits was driven by a strong final quarter of the year when Cisco posted revenues of $12.8bn, up 3.9 percent, generating profits of $3bn.

Cisco said that it saw revenue growth of seven percent in its key home market of North America to $7.8bn, but that Europe and the Middle East, and Asia Pacific, were flat.

Overall for the year, the Americas contributed just shy of $30bn to Cisco’s bottom line, compared with $12bn in Europe and the Middle East and $7bn in Asia Pacific.

Revenue growth by division came mainly from the company’s collaboration and data centre arms, each seeing 14 percent growth in Q4 2015 compared with the same period the year before.

Cisco’s switching division remains the cash cow of the business, however, generating quarterly revenues of $3.71bn, up two percent quarter on quarter, and $14.74bn for the full year, a rise of five percent.

Another growing area for Cisco is its security division, which saw revenues of $1.74bn for 2015, a rise of 12 percent. The company hopes that its $635m deal for security and Internet of Things company OpenDNS will grow this further.

However, Cisco has given up on its service provider video unit, where revenues fell by 10 percent in the 2015 fiscal year, and has signed a deal to sell the division for $600m to French company Technicolor.

Newly appointed chief executive Chuck Robbins said it is exciting to see Cisco performing so well and that the company is ready for future growth.

“While this is only my third week officially in the CEO role, we’ve really hit the ground running since my appointment was announced on 4 May,” he said on an earnings call.

“I believe that I’m stepping into this role at an incredible time for the company. [Former CEO John Chambers’] vision and leadership have set Cisco up for a future that I believe will be even better than our past. John is an industry icon, a global community leader, a friend.”

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13 August 2015 | 3:41 pm – Source: v3.co.uk

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