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Cisco's Q4'FY11 operating cash flow, product gross margin and router sales sequentially declined
Wed, 8/10/11 - 10:36pm    View comments

Update 8-17-11:

Quarterly unrecognized revenue cash receipts from Cisco's two-tier distributors dropped -21% Y/Y

Update 8-12-11:

Palo Alto Networks is the culprit behind Cisco's -8.4% FY11 security sales decline
 

As shown below, operating cash flow, product gross margin and router sales all sequentially declined during Cisco's Q4'FY11.

Most alarming to me was the -$408 million drop in Cisco's Q4 Y/Y (Year-Over-Year) operating cash flow!

A comparison of Cisco's FY11 sales to Cisco's FY10:

• Total net sales climbed +$3.178 billion, up +7.9% to $43.218 billion from $40.040 billion.
• Router sales climbed +$438 million, up +6.6% to $7.069 billion from $6.631 billion.
• Switch sales dropped -$92 million, down a 6th of a percent -.006 to $13.437 billion from $13.529 billion.
• New product sales climbed +$1.623 billion, up +14.2% to $13.035 billion from $11.412 billion.
• Other product sales climbed +$137 million, up +16.1% to $985 million from $848 million.
• Services sales climbed +$1.072 billion, up +14% to $8.692 billion from $7.620 billion.

• Video connected home sales were down a slight -$2 million to $4.262 billion from $4.264 billion.
• Collaboration sales climbed +$984 million, up +31.1% to $4.147 billion from $3.163 billion.
• Security sales dropped -$146 million, down -8.4% to $1.582 billion from $1.728 billion.
• Wireless sales climbed +$301 million, up +26.3% to $1.443 billion from $1.142 billion.
• Data center sales climbed +$486 million, up +43.5% to $1.601 billion from $1.115 billion.
• View how Cisco reorganized its product sales reporting.
• View Cisco's Q4'FY11 press release.
• View Cisco's Q4'FY11 financial highlights.
• View Cisco's Q4'FY11 earnings call transcript.

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

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

Related story:

Quarterly unrecognized revenue cash receipts from Cisco's two-tier distributors dropped -21% Y/Y

Palo Alto Networks is the culprit behind Cisco's -8.4% FY11 security sales decline

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