Cisco Switching Revenues Decline in First Quarter
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Cisco reported first quarter fiscal 2013 earnings late Tuesday that showed continued revenue growth, even though there as a decline in the company's switching business. For the quarter, Cisco reported revenue of $11.9 billion for a 6 percent year-over-year increase. Net Income was reported at $2.1 billion or $0.39 per share for an 18 percent year-over-year gain.
Down spots for Cisco came in terms of switching revenues which declined by 2 percent and collaboration which declined by 8 percent. In terms of rapid growth, wireless revenues grew by 38 percent and Cisco's data center business grew by 61 percent.
A key trend that could reshape the networking market is the move toward Software Defined Networking (SDN). Chambers said during his company's earnings call that it is his view that it's not just going to be a software or just a hardware world. He sees the need to put software in hardware ASICs as being critical to delivering fast .
"So I like our cards, I like how we're positioned and we don't miss market transitions," Chambers said. "You can get give us lot of grief about many things, over the last 20 years, but we will get it right ahead of other people, either or where we're today in the data center, or IP telephony or the role that our business models are going change."