*UKHotViews Extra* Cisco revenue flat in Q4 but strong growth in security & apps

In Q4 2022 Cisco reported total revenue was flat at $13.1bn, with both product revenue and service revenue flat yoy. Cisco continues to make progress in its shift to more software and subscription-based revenue with Annual recurring revenues (ARR) of $22.9bn, an increase of 8%, with product ARR growth of 13% driven by several large software transactions closing during the quarter. Total software revenue was $3.9bn, a decrease of 2%, with software subscription revenue up 1%. Geographically Americas was down 3%, EMEA up 8%, and APJC down 2%.

Within product revenue, Secure Agile Networks was down 1%. Switching declined in both data center and campus driven by supply constraints. ‘Internet for the future ‘was down 10%. End-to-end security had record revenue with strong growth of 20%, driven by strength across the entire portfolio. Optimized application experiences had solid growth of 8%, driven by double-digit growth in their SaaS-based offering, ThousandEyes

For FY22 Total revenue was $51.6bn, an increase of 3% with Net Income of $11.8bn, an increase of 12%, despite significant supply constraints, rising component, and related costs, and the war in Ukraine. After a challenging April due to the COVID-related shutdowns in Shanghai, and the impact on semiconductor and power supplies, overall supply constraints began to ease slightly at the back half of Q4 and continuing into the start of Q1.

For Q123 Cisco expects yoy revenue growth of between 2-4%, and between 4-6% yoy growth for FY23.

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Posted by Simon Baxter at '09:57' - Tagged: networks