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Cisco's Q2FY11 sales sequentially declined in collaboration, other, routers, security, switches and total sales
Wed, 2/9/11 - 11:59pm    View comments

Cisco CEO John ChambersCiscoCisco's reorganization of its product sales reporting continues to detail the sequential quarterly sales declines of its products (Cisco had a sequential total sales decline of -$343 million, the 2nd sequential total sales decline in a row for a total decline of -$429 million), see the below chart.

Interestingly to me, during Q2'FY11 Cisco's much ballyhooed collaboration sales (which include the sales of Cisco's telepresence, Tandberg and unified communications products) sequentially declined by -$39 million.

Also, Cisco's Q2'FY11 other sales (which includes the sales of Cisco's optical and emerging technologies products) sequentially declined by -$20 million. Amazingly in my opinion, listen at the 7:30 time mark as the leaders of Cisco's Emerging Technologies Group bragged that Cisco had 400 different billion-dollar ideas within Cisco's open Wiki called I-Zone.

Cisco's Q2'FY11 router sales sequentially declined by -$132 million (keep in mind that the highly touted Cisco CRS-3 router appears to have recently caused network outages at both Comcast and AT&T). Tellingly, Cisco's Q2'FY11 router sales are down a whopping -$297 million from Cisco's Q2'FY08 router sales (see page 26).

Cisco's Q2'FY11 security sales sequentially declined by -$36 million (the 2nd sequential security sales decline in a row for a total decline of -$167 million, which works-out to be a stunning -32% decline from Q4'FY10).

Finally, Cisco's Q2'FY11 switch sales sequentially declined by a staggering -$400 million (the 3rd sequential switch sales decline in a row for a total decline of -$510 million. It's also noteworthy that Cisco's Q2'FY11 switch sales are down -$198 million from Cisco's Q2'FY08 switch sales (see page 26).

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

Cisco's Sales
(in millions)
Q1'FY10 Q2'FY10 Q3'FY10 Q4'FY10 Q1'FY11 Q2'FY11
Routers $1,600 $1,586 $1,714 $1,731 $1,804 $1,672
Switches 2,851 3,409 3,661 3,608 3,551 3,151
New Products 2,545 2,784 2,837 3,246 3,114 3,202
Other 204 197 224 223 231 211
Services 1,821 1,839 1,932 2,028 2,050 2,171
TOTAL $9,021 $9,815 $10,368 $10,836 $10,750 $10,407

Cisco's New Product
Sales
(in millions)
Q1'FY10 Q2'FY10 Q3'FY10 Q4'FY10 Q1'FY11 Q2'FY11
Video Connected Home $901 $1,153 $1,115 $1,095 $1,000 $1,097
Collaboration 703 715 752 993 1,019 $980
Security 403 394 405 526 395 359
Wireless 310 254 271 307 338 340
Data Center 228 268 294 325 362 426
TOTAL $2,545 $2,784 $2,837 $3,246 $3,114 $3,202

Source: Cisco Systems


Why do you think Cisco's sales are sequentially declining in collaboration, other, routers, security, switches and total sales?

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