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Cisco's Q4'FY12 gross margin, switching, routing, collaboration, SP video and other revenue all sequentially declined

Quarterly revenue in 5 of Cisco's 9 sales reporting categories sequentially declined.

Wed, 8/15/12 - 9:47pm    View comments

Cisco Product Revenue CategoriesView Cisco's Q4'FY12 earnings conference call transcript, slide presentation and press release.

2-weeks ago I blogged that Cisco appeared to have missed the "market transition" in videoconferencing.

Well this afternoon, Cisco CEO John Chambers revealed:

"Collaboration declined 8% to $992 million in the most recent quarter. The decline is driven primarily by decrease in teleprinter sales due largely to challenges in the public sector, which were down year-over-year almost 30% in the European markets, which were down in terms of telepresence in the mid-30s as well."

Regarding Cisco's sequential quarterly product gross margin decline, Cisco CFO Frank Calderoni stated:

"The quarter-over-quarter decrease was primarily driven by pricing, product mix, driven by strength in our data center business and to a lesser degree higher overall manufacturing costs due to higher warranty expense."

Cisco CEO John Chambers made a remark about Cisco's sequential quarterly switch revenue decline:

"Now, moving on switching, overall switching revenues flat this quarter at $3.6 billion, with fixed switching up 3% and modular switching down -7%. Within the fixed switching, our Nexus 2 and Nexus 5K switching had another good quarter and was up more than 24% year-over-year due in part to strong data center build outs.

"From a modular switching perspective, our Nexus 7000 strong growth, up approximately 13% in Q4. Our corresponding Cat6K decline reflects the product transitions to the Nexus 2, 3, 5 and 7K as planned. A number of factors have driven the strong demand including the gig Ethernet 10G transition with the 10G port shipments growing 54%, and solid momentum in the top 10 MSDCs were full-year FY '12 growth was 38% year-over-year."

The sequential quarterly SP Video revenue decline was decribed by Chambers as:

"SP Video declined by 2% in Q4. Lower CMPS shipments were partially offset by growth in IP set top boxes."

Cisco's quarterly operating cash flow (OCF) - (View the spreadsheet without frames):

Source: Cisco Systems

Cisco's quarterly gross margin (GM) (View the spreadsheet without frames):

Source: Cisco Systems

Cisco's quarterly sales (View the spreadsheet without frames):

Source: Cisco Systems

Cisco's Q4'FY12 related documents:

View the operating cash flow spreadsheet

View the gross margin spreadsheet

View the quarterly sales spreadsheet

Earnings call transcript

Financial slide presentation

Financial press release

Related story:

Cisco's 2Q12 videoconferencing revenue dropped -23.7% year-over-year

First time in 10-years Cisco's FY12 research and development expense sequentially declined

What's your take?

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