Steady as she goes, transitioning from products to recurring revenues
Summary of the Earnings Report
Cisco reported revenues of $12.1B for the quarter ending October 28, 2017 – the company’s first quarter for fiscal 2018. On an annual basis, total revenues were down 2%. Figures highlighted by the company included security revenues up 8%, although security is just 5% of the total revenue picture; services revenues of $3.05B, up 1% year over year to represent 32% of total revenues.
Effective this quarter, Cisco has totally revamped its financial reporting structure. For the past several years, Cisco has reported its business in nine categories, with Collaboration generally generating about $1B each quarter. Beginning with this quarter, Cisco has reduced its reporting categories to five segments: Infrastructure Platforms, Applications, Security, Other Products, and Services.
After comparing past and current reporting figures, the mapping from old to new appears to be the following: