Cisco Redefines Product Reporting Categories to Align with Its Intentions
Cisco has changed the way it groups products together for financial reporting. As part of Cisco's 1Q18 financial results, which were reported on Nov. 15, the new product categories are Infrastructure Platforms, Applications, Security, Other Products and Services.
For the quarter, Cisco reported revenue of $12.1 billion for a two percent year-over-year decline. Net income was reported at $2.4 billion, up three percent from the first quarter of fiscal 2017. Looking forward, Cisco provided second quarter fiscal 2018 guidance for revenue to grow in the range of one percent to three percent year-over-year.
Infrastructure Platforms, which includes Cisco's routing and switching hardware, reported $7 billion in revenue for a four percent year-over year decline. The majority of the decline was attributed to Cisco's routing hardware for both service providers and enterprise customers. Cisco also saw another decline in its switching revenues, though the company is optimistic about its new intent-based networking model.
Cisco CEO Chuck Robbins said that his company's new intent-based networking capabilities are providing customers unparalleled insights and intelligence, together with highly-differentiated security and programmability. The intent-based networking approach was first announced by Cisco in June.
"We continue to advance our intent-based networking for data center and private cloud environments with the latest software release of ACI," Robbins said during company's earnings call. "Over 4,000 ACI customers are benefiting from increased business agility with network automation, simplified management and improved security."
A core part of the intent-based networking approach is the Catalyst 9000 switching platform. Robbins said that the Catalyst 9000 has been adopted by more than 1,100 customers in just over three months.
"Going forward, we see a tremendous opportunity to benefit from a shift in customer demand from stand-alone products to integrated platforms with our intent-based infrastructure portfolio providing unmatched benefits," Robbins said.
Security is now the fastest growing segment of Cisco's business, with first quarter 2018 revenue reported at $585 million for an eight percent year-over-year gain. Robbins noted that cybersecurity is the number one priority for businesses worldwide and is at the heart of every company's digital strategy.
"In a multi-cloud world, as our customers' environments become increasingly distributed, security requirements only increase," Robbins said. "At Cisco, security continues to be a strategic imperative and fundamental to everything we do."
Sean Michael Kerner is a senior editor at EnterpriseNetworkingPlanet and InternetNews.com. Follow him on Twitter @TechJournalist.