Cisco CEO points to digital progress despite income fall - Mobile World Live

Cisco CEO points to digital progress despite income fall

17 AUG 2017

Cisco CEO Chuck Robbins (pictured) talked-up increased demand for security products and strong progress in the company’s transition from a hardware to a software company, as it booked a 14 per cent year-on-year drop in net income for its fiscal Q4.

In its latest earnings statement – covering the three months to July 29 – Robbins reported net income of $2.4 billion on revenue of $21.1 billion, which was down 4 per cent on the same period of 2016.

In recent quarters the company slashed costs in its lower growth hardware segments as it bids to change its focus to software-based systems and new technologies. During May, the company announced it was set to cut 1,100 jobs in low performance divisions following a 5,500 headcount reduction announced in August 2016.

Speaking to investors on its Q4 earnings call, Robbins said: “Our innovation is as strong as ever as we focus on accelerating our core networking, security, software, and cloud based businesses. While it will take time. I firmly believe our core business is better positioned for the long term as we realise the benefits from our next generation internet-based networking portfolio.”

Part of its new technology drive included a partnership with Microsoft to develop and deploy networking technology on Microsoft’s growing Azure IoT platform.

Security boost
Its security business also continued to be a bright point for the company. Robbins said the global increase in cyber attacks helped boost customer numbers in this segment in Q4. During the quarter, it increased network security firewall customer numbers by 6,000 to nearly 80,000.

“With growing cyber attacks and the need for our customers to protect their business-critical data and applications we are aggressively providing security everywhere in the network, in the cloud and at the end point,” he added.

The security division of the company also extended a partnership with Apple during fiscal Q4, which Robbins said would see it develop the first enterprise security application for iOS.

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Chris Donkin

Chris joined the Mobile World Live team in November 2016 having previously worked at a number of UK media outlets including Trinity Mirror, The Press Association and UK telecoms publication Mobile News. After spending 10 years in journalism, he moved...

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