US-based networking solutions giant Cisco has reported a 9% dip in its year-on-year revenue.
The company yesterday reported its fourth quarter and fiscal year 2020 earnings.
It said total revenue was $12.2 billion, down 9%, with product revenue down 13% and service revenue was flat.
Revenue by geographic segment was: Americas down 12%; Europe, Middle East and Africa down 6%; and Asia Pacific, Japan and China down 7%.
It notes that product revenue was led by growth in security, up 10%. The infrastructure platforms business was down 16% and applications was down 9%.
Cisco says net income on a generally accepted accounting principles (GAAP) basis was $2.6 billion or $0.62 per share, and non-GAAP net income was $3.4 billion or $0.80 per share.
As previously disclosed, the company says it completed the divestiture of the Service Provider Video Software Solutions (SPVSS) business in the second quarter of fiscal 2019 on 28 October 2018.
Revenue and non-GAAP financial information have been normalised to exclude the SPVSS business from prior periods for comparative purposes.
“By the end of fiscal 2020, we achieved our goal of more than half of our revenue coming from software and services, and this strategy continues to resonate with customers as they digitise their organisations,” says Chuck Robbins, chairman and CEO of Cisco.
“Throughout fiscal 2020, Cisco has demonstrated operational resilience based on our strong customer relationships, solid financial foundation and differentiated innovation. As we focus on the future, we are rebalancing our research and development investments to focus on new areas so we can continue to offer customers the best, most relevant technology in simpler, more easily consumable ways,” he adds.
On a GAAP basis, Cisco’s total gross margin, product gross margin and service gross margin were 63.2%, 61.2% and 68.7%, respectively, as compared with 63.9%, 62.9% and 66.8%, respectively, in the fourth quarter of 2019.
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