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Cisco narrowly beat the street, posting its fiscal second-quarter earnings at the close of market yesterday.
The network king posted 57 cents per share on revenues of $11.8bn. Analyst consensus was 54 cents a share on $11.75bn in revenue.
Net income rose to $3.1bn, from $2.4bn a year earlier.
Taking a look at the many individual pies in which Cisco’s fingers are in, the routers business rose 5% to $1.85bn for the quarter.
Revenue for switches business, Cisco’s largest, fell 4% to $3.48bn.
Security saw double-digit growth, recording an 11% increase in revenue to $462m.
The San Francisco-based company is, like most of the old guard, working to transition itself to a more cloudy, software-friendly kinda company, and so the executive team was keen to point out the double digit growth in a two of its SaaS products – WebEx and Meraki Cloud Networking,
Despite the positive quarter, CEO Chuck Robbins did his best to manage expectations for the coming months.
“Recently, we've experienced one of the most volatile times in the global markets. This volatility led to a slowdown in spending impacting our business, especially during the last few weeks of January as we closed our quarter,” he said on a call with analysts.
Robbins said that customers were being more cautious in their buying decisions as they tried to ‘digest what was going on’ with current market volatility.
Cisco's earnings come a week after the company announced that it is to buy IoT-leader Jasper Technologies for $1.4bn. The company believes that it is now well equipped to capitalise on the IoT movement.
“Our portfolio is more strategic than ever to companies and countries that are digitizing everything,” Robbins said. “Cisco is unique in our ability to connect everything for our customers, from the sensor to the data centre, with security and analytics. As a result, our conversations are no longer just in IT. They have become prevalent in the C-suite and the boardroom.”