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Telepresence and Collaboration Shine in Cisco's Q4 2011 Earnings

August 11, 2011 | William Zimmerman
Telepresence continued to shine in Q4 at Cisco. See the quotes below from the quarterly earnings call. A full transcript of that call can be found here. Also below, some figures compiled by Brad Reese. Enjoy!

John Chambers, CEO and Chairman of the Board of Cisco Systems

"Our collaboration suite of new products grew revenue and orders 11% year-over-year. TelePresence continued to lead the way, with year-over-year revenue growth of 24% and order growth of 35%."

"We have also been very focused on gross margins for our new products with TelePresence products as an example approaching our traditional core product's gross margin."

"As we said earlier, TelePresence for the year grew 24% and emerging technology video grew 34%. On a full year basis, video revenues were approximately $4.9 billion, up 29% year-over-year including the effective TANDBERG acquisition. TANDBERG is now fully integrated into all aspects of Cisco."

Gary Moore, Executive Vice President and Cheif Operating Office

"...we have begun to rightsize our investments across all of our businesses through exiting businesses, reduced investment and reinvestment in our priorities. From a reinvestment perspective, we have increased our financial commitment in several key areas, including but not limited to our collaboration, data center virtualization, mobile Internet technologies, TelePresence, security, cloud, systems management and video. Reductions in investments were in businesses where we were overinvested in certain non-core aspects of that business. In these situations, we remain committed to the long-term potential but need our investment to better match the market demand in the near and medium term."

A comparison of Cisco's FY11 sales to Cisco's FY10:

  • Total net sales climbed +$3.178 billion, up +7.9% to $43.218 billion from $40.040 billion.
  • Router sales climbed +$438 million, up +6.6% to $7.069 billion from $6.631 billion.
  • Switch sales dropped -$92 million, down a 6th of a percent -.006 to $13.437 billion from $13.529 billion.
  • New product sales climbed +$1.623 billion, up +14.2% to $13.035 billion from $11.412 billion.
  • Other product sales climbed +$137 million, up +16.1% to $985 million from $848 million.
  • Services sales climbed +$1.072 billion, up +14% to $8.692 billion from $7.620 billion.
  • And here's a comparison of Cisco's FY11 new product sales to Cisco's FY10:
  • Video home sales were down a slight -$2 million to $4.262 billion from $4.264 billion.
  • Collaboration sales climbed +$984 million, up +31.1% to $4.147 billion from $3.163 billion.
  • Security sales dropped -$146 million, down -8.4% to $1.582 billion from $1.728 billion.
  • Wireless sales climbed +$301 million, up +26.3% to $1.443 billion from $1.142 billion.
  • Data center sales climbed +$486 million, up +43.5% to $1.601 billion from $1.115 billion.
These figures and more can be found on Brad Reese's blog here.

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