
Huawei’s presence in the U.S. market had created tremendous pressure on Cisco’s revenue streams. Considering the growth in revenue and profit, Cisco is free from the Chinese competition for the time being.
Nytimes.com said Cisco has been under assault from Huawei in the developing world and HP for its European and American customers. By consolidating much of its manufacturing and offering big-ticket networking systems, Cisco’s gross margins for the quarter rose to 62.7 percent from 62.4 percent a year ago.
Cisco said its security business grew 6 percent, networking income increased 38 percent, data center sales jumped 61 percent.
However, its core business – switching and routing – declined 2 percent year-over-year.
Its collaboration business including unified communications (UC) and Telepresence declined 8 percent in the quarter.
NDS enabled Cisco to clock in video business. Cisco’s sales of products for the wireless and data center market boomed, thanks to mobile devices and cloud computing.