Cisco Systems Inc., the internet gear manufacturer, is eyeing a strong year as companies make digital transformation projects a priority in their technology investment plans even as they slow some spending plans, CEO Chuck Robbins says.
Chuck Robbins, chairman and CEO,
Cisco Systems Inc.
“Digital transformation and hybrid cloud remain top areas of spend, which is fueling growth across our portfolio,” he said on an earnings call this week. “Many customers have told me that while their spend levels may be slowing in some areas, technology remains essential as it is vital to their overall business resilience, competitive differentiation, and success.”
Robbins went on to say that, over the past few years, Cisco has grown sales of web-scale cloud infrastructure “from effectively zero to a multibillion-dollar run rate business” producing billions in annual revenue, Robbins said on the earnings call, according to a transcript from The Motley Fool. Cisco’s web-scale business supports customers’ deployment of large data centers and other digital transformation projects.
Cisco Systems revenue
Cisco said revenue for the 2023 fiscal second quarter ended Jan. 28 increased 6.8% year over year to $13.59 billion, as net income fell 6.7% to $2.77 billion.
For the six months ended Jan. 28, revenue increased 6.3% to $27.22 billion, as net income dipped 8.6% to $5.44 billion. For the full fiscal year, which ends in October, Cisco is projecting 9% to 10.5% year-over-year growth.
Cisco didn’t break out ecommerce revenue for the second quarter or first half of fiscal 2023. But the company says most customers place orders with Cisco’s technology deployment partners, who use the Cisco Commerce web portal to configure products, get quotes, check pricing and place orders. Cisco has said it processes about 60% of orders via the Cisco Commerce web portal.
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