Editor’s note: Cisco’s ongoing portfolio transition efforts support the recapture of growth in 2018 as clients increasingly seek next generation network solutions, says Technology Business Research Analyst Michael Soper after reviewing the tech giant’s latest financials on Wednesday. Cisco operates one of its largest corporate campuses in Research Triangle Park.
HAMPTON, N.H. – Cisco closed fiscal 2017 down, however the company will pare losses in 2018 as clients accelerate reinvestments in core product portfolio areas
2Q17 results underscore the challenges Cisco faces as it seeks to evolve its legacy routing and switching businesses toward an intent-based networking model. While the portfolio evolution is ongoing, investments in innovative networking solutions are resonating with clients.
Overall, revenue declined 4.0% year-to-year in 1Q17, the company’s worst top-line growth performance since 1Q14, although this was largely in line with corporate expectations.
Additionally, while Cisco remains highly profitable, the company is feeling the impact of macro trends, such as increased memory pricing and slight increases in pricing erosion.
That considered, we expect the company’s early traction with its platform transition efforts around the Catalyst 9000 switches, along with continued strong performance related to the ACI portfolio, leave the company well positioned to recapture top-line growth by the tail end of its fiscal year 2018.
- VIDEO: Watch an overview of the Catalyst 9000 technology at https://www.youtube.com/watch?v=MuSc7MhwtDk
The implications of Cisco and Ericsson’s partnership evolution and how Cisco is attacking the IoT market [also will affect 2018.]