Cisco reports "record" results for the fiscal quarter ending 26 January 2016, with sales reaching $12.1 billion with 5% Y-o-Y growth despite economic turmoil in Europe and beyond.
Profits total $3.1bn with 44% Y-o-Y growth.
The company sees EMEA sales decline by -9% Y-o-Y, even if it says a number of European territories (including N. Europe and the UK) show positive spending trends.
“We are seeing some stabilisation, but it is still too soon to call a total recovery in Europe,” CEO John Chamber remarks. “You’re going to see S. Europe remain tough.”
The EMEA decline is offset by the US, where sales are up by 9% Y-o-Y.
The Cisco core business, switches, grows by 3% Y-o-Y while routers drop by -6%, as does the collaboration (UC and telepresence) unit, by -11%. On the other hand security sales show slight 1% Y-o-Y growth.
Total product segment revenues grow by 3.5% Y-o-Y, while services revenues increase by 10%.
Chamber points out 3 trends as future growth catalysts-- mobility, programmable and application-centric networks, and the so-called "internet of things" (ie objects with embedded wireless communications sensors).