Revenue growth of 9% YoY
In fiscal 3Q17, Cisco (CSCO) saw a significant YoY (year-over-year) revenue growth of 9% in its Network Security Business segment. The segment’s revenue growth was driven by strong performances from its unified threat management as well as its advanced threat and web security businesses, which rose 50% and 30% YoY (year-over-year), respectively, in fiscal 3Q17.
Prior to fiscal 3Q17, Cisco saw double-digit growth for five consecutive quarters. Its deferred revenue rose 39% YoY, driven by Cisco’s ongoing shift from hardware-based to software-based and subscription-based services. Its revenue rose from $483 million in fiscal 3Q16 to $527 million in fiscal 3Q17. In the nine months ended April 29, 2017, revenue rose 12% YoY to $1.6 billion.
Cisco’s CEO, Charles Robbins, said, “Deferred revenue grew 39%, demonstrating the value of our solutions and ongoing delivery of innovation. Services was down 2%. Normalized for the extra week, it grew 4%. We’re continuing to focus on renewals and attach rates.”
Cisco dominates the worldwide security appliance market
According to market research firm IDC, tech (QQQ) heavyweight Cisco had a 13.7% share in the worldwide security appliance market at the end of 4Q16. The other top players in this market include Check Point (CHKP), Palo Alto Networks (PANW), Fortinet (FTNT), and Huawei with shares of 12.3%, 11.1%, 9.5% and 4.7%, respectively.