Service provider video unit boosts Cisco performance

Cisco’s service provider video business saw revenues rise by 37% in the company’s fiscal second quarter, driven by sales in China. The figures excluded the consumer premises business unit that Cisco sold to Technicolor, which was completed in November.

Speaking to analysts after the company reported its results, CEO Charles Robbins said that the service provider video team had “done a great job of evolving that portfolio” and building new solutions.

“Our strategy after divesting the video CPE business was to really focus on a cloud-based delivery model, and that is occurring,” he said, noting the success the company has experienced in the Chinese market.

Overall Cisco’s service provider arm, which grew by 5%, outperformed its enterprise sales, which fell by 2%, its commercial sales arm, which grew by 4%, and its public sector activity, which was flat. Geographically, growth came from China, India and other emerging markets, with the EMEA market declining by 1% and the Americas market flat.

Cisco’s Q2 revenues excluding the service provider CPE business amounted to US$11.8 billion (€10.4 billion), up 2%, which beat the company’s guidance of flat-to-negative growth. Net income was US$2.9 billion, up 7%.