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Cisco's Q1'FY12 gross margin, switching and NGN routing revenue declined year over year

Furthermore, Cisco's Q1'FY12 operating cash flow, service gross margin, service provider video, wireless, security and other product revenues sequentially declined.

Thu, 11/10/11 - 4:30am    View comments

According to Cisco's Q1'FY12 earnings call transcript:

"We've also updated our product revenue reporting to better align with our 5 foundational priorities. Expect that this enhanced reporting will be helpful to investors. This change provides revenue reporting for a number of components of our prior new products category.

"Effective this quarter, we are providing total revenue and year-over-year growth disclosures, switching, next-generation or NGN routing; collaboration; security; wireless; service provider video; data center and other products. There are also certain reclassifications which are outlined in the slides that accompany this call."

Cisco's newly reorganized product category revenue reporting:

Source: Cisco Systems

Additionally, Cisco CFO Frank Calderoni revealed that at the end of the first quarter, Cisco's headcount totaled only 63,465 down approximately -8,400 employees. Also, Cisco's cash, cash equivalents and investments at the end of the quarter were $44.4 billion, down -$197 million from Q4'FY11. Of this total, $3.8 billion was held within the U.S. at the end of Q1'FY12.

Catching my attention during the earnings call was Cisco CEO John Chambers revealing that Q1'FY12 mid-low end routing revenue declined by -16% year-over-year.

Surprisingly year-over-year, Cisco's switching revenue dropped by -$14 million, next generation network (NGN) routing revenue fell by -$69 million and other product revenue declined -$74 million.

Sequentially, Cisco's service provider video revenue plummeted -$103 million, wireless declined -$43 million, security was off by -$4 million and other product was down by -$21 million.

Cisco's sequential quarterly operating cash flow declines (highlighted in yellow)

Cisco's sequential quarterly margin declines (highlighted in yellow)

Cisco's sequential quarterly sales declines (highlighted in yellow)

View Cisco's previous product category revenue history.

Related story:

Cisco inadvertently reveals never before seen FY11 product revenue results
 

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