Cisco CEO Chuck Robbins (pictured) stated a trend of improved supply chains continued into its fiscal Q1 2023 (calendar Q3), which helped deliver the largest quarterly revenue in the company’s history.
On Cisco’s earnings call, Robbins noted a redesign of many products and action taken over several quarters to alleviate supply chain issues yielded positive results.
“We were encouraged by what we were seeing with modest improvement in certain component availability, as shortages continued to ease from last quarter.”
He noted the easing supply constraints was “now releasing software subscriptions that were sitting in backlog connecting to unshipped hardware”.
Cisco has spent several years transitioning from one-time hardware sales to reccurring software-based. Total software revenue increased 5 per cent year-on-year and software subscription 11 per cent.
“Our business model is resilient with 43 per cent of our revenue now recurring, which is very important as we navigate the current macro environment,” Robbins said.
Cisco posted $10.3 billion in product-related revenue, an increase of 8 per cent, though services was flat on $3.4 billion.
Overall revenue of $13.6 billion was up 6 per cent, while net income of $2.7 billion was down 10 per cent.Subscribe to our daily newsletter Back