Cisco predicts 3%-5% FQ3 revenue growth as CEO John Chambers notes Cisco isn't modelling a rebound in emerging markets and service provider sales for several more quarters. As is the case with other enterprise tech giants, currency is acting as a headwind.
Product orders rose 5% Y/Y in FQ2, an improvement from FQ1's 1%; Americas orders +8% and EMEA +7%, but Asia-Pac -6%, with a 19% Chinese decline more than offsetting 11% Indian growth. Enterprise orders +10%, with Cisco's 28 largest enterprise accounts growing over 30%. Commercial rose +8% and public sector +7%. Service provider orders fell 1%, but that's a big improvement from FQ1's 10% drop.
Product segment performance: Switching revenue +11% to $3.62bn (lifted by Nexus 3K/9K data centre switch growth); routing +2% to $1.76bn; collaboration +10% to $990m (improved from recent quarters); data centre (UCS servers) +40% to $846m; service provider video -19% to $776m (set-top share loss); wireless +18% to $611m (Meraki sales more than doubled); security +6% to $416m.