Cisco’s Routing Segment’s Revenues Fell Again in Fiscal 4Q17


Aug. 22 2017, Updated 7:36 a.m. ET

Revenues fell 9% in fiscal 4Q17

Cisco’s Routing segment’s revenues fell 9% YoY (year-over-year) in fiscal 4Q17[1. fiscal 4Q17 ended July 29, 2017] to $1.9 billion. In fiscal 2017, its revenues fell 4.0% YoY to ~$7.8 billion. Routing is Cisco’s (CSCO) third-largest business segment and accounted for 15.6% of total revenues in fiscal 4Q17 and 16.3% of revenue in fiscal 2017.

During Cisco’s fiscal 4Q17 earnings call, the company’s CFO, Kelly Kramer, stated, “Routing was down 9% driven by weakness in enterprise access, we did see a spending cause related to our acquisition of Viptela that we will integrate into SD-WAN portfolio.”

In fiscal 3Q17, the Routing segment’s revenues fell 2% YoY to ~$2.0 billion, although the firm saw a rise in orders. In 2016, Cisco noted the company would successfully drive the transition to software-defined wide area networking (or WAN) with its intelligence WAN (or IWAN) portfolio.

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Cisco still dominates the routing space

According to market research firm IDC, Cisco retained its lead in the worldwide routing space at the end of 1Q17. However, Cisco lost market share from 48.8% in calendar 1Q16 to 43.9% in calendar 1Q17. Cisco competes with Juniper Networks (JNPR) and China’s (FXI) Huawei in the Routing market, which reported market shares of 15.6% and 19.8%, respectively.


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