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August 13, 2015

Services and software growth drive Cisco’s Q4

Revenue and net income increased to $12.8bn and $2.3bn respectively.

By CBR Staff Writer

Cisco has reported a 3.9% increase in its revenue to $12.8bn for the fourth quarter ended 25 July 2015, compared to $12.4bn in the year-ago period.

Net income rose 3.2% to $2.3bn, or $0.45 diluted earnings per share (EPS), compared to $2.2bn, or $0.43 diluted EPS, for the same period last year.

Revenue in the Americas region grew the most, increasing by 7% year-on-year to $7.8bn. Sales in Europe and in the Asia Pacific regions were flat.

Product revenue and service revenue each grew 4%, and switching and NGN routing rose by 2% and 3%, respectively. Collaboration and data centre each accounted for 14% of product revenue.

In Q4, Cisco agreed to sell the client premises equipment part of its Service Provider Video connected devices unit to France-based Technicolor for about $600m in cash and stock.

The company said it will continue to refocus its investments in service provider video towards cloud and software-based services.

Cisco has also revealed its intent to acquire cloud-based security firm OpenDNS to enhance its security portfolio.

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The company finished its fiscal year with revenue of $49.2bn, up 4 percent. Cisco said it expects revenue in the first quarter of 2016 to increase in the range of 2% to 4%.

Cisco chief executive officer Chuck Robbins said: "We closed out our fiscal year with record revenues and record non-GAAP EPS, for both Q4 and FY15.

"I’m particularly pleased with the strong growth of deferred revenue which shows we are very effectively driving our business to a more predictable software-based business model, at the same time as growing revenues and earnings."

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