Cisco revenue up 5.1%, Chambers quits

Cisco has reported 5.1 percent increase in revenue year over year in the third quarter, meeting its projections of 3-5 percent rise.

Revenue for the third quarter stands at $12.1 billion.

Net income for the third fiscal period rose 11.7 percent over the previous year.

Cisco India revenue rose by 6 percent year over year.

Cisco also announced the resignation of chief executive officer John Chambers. Chuck Robbins will take over as new CEO on July 26.

Announcing his resignation Chambers said the time is now to begin Cisco’s next chapter.

John Chambers Cisco

“I am extremely honored and proud to have led Cisco for the last 20 years and to get us to this positive inflection point. We have a tremendous opportunity to extend our lead in the industry, and with Chuck Robbins as the CEO for Cisco’s next chapter, we have exactly the right leader to capture that opportunity. I could not be more confident in our future,” Chambers said.

Chambers will continue as executive chairman.

Cisco’s margin is primarily aided by switching systems, which still contributes as the largest single business. Switch revenue for the quarter rose 6 percent during the last quarter. Routing equipment revenue increased 4 percent.

The networking major, however, is losing its market in equipment for cable companies. Cisco is facing competition from rivals like Arris Group and Casa Systems.

While overall revenue from U.S increased 2 percent, revenue from service provider segment declined 7 percent. Service provider video segment business declined 5 percent.

Cisco faced setback in China where its business declined by 20 percent. Despite this, the Asia-Pacific sales grew 1 percent in the last quarter.

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