uploads/2017/08/2-20.png

Cisco’s Security Segment’s Revenues Rose 3% in Fiscal 4Q17

By

Updated

Revenues rose 3% YoY in fiscal 4Q17

Cisco Systems’ (CSCO) Security segment reported revenues of $558.0 million in fiscal 4Q17,[1. fiscal 4Q17 ended July 29, 2017] a rise of 3% YoY (year-over-year). In fiscal 2017, revenues from this segment rose 9% YoY to ~$2.2 billion. Its deferred revenues rose 49% YoY in fiscal 4Q17, driven by double-digit orders in the quarter.

Revenue from Cisco’s Security segment touched the $2.0 billion mark for the first time in fiscal 2017, and the company stated that it is the only security company that is growing at that scale.

Revenue growth in fiscal 4Q17 was driven by Cisco’s next-generation firewall portfolio. Cisco added 6,000 customers in fiscal 4Q17, which is more than triple the number of customers added by its nearest competitor. This solution’s customer base exceeded 80,000 at the end of fiscal 2017.

Cisco’s revenues from its advanced threat portfolio rose 9% YoY in fiscal 4Q17, and the firm added 7,600 customers in fiscal 4Q17 to bring its total customer base to ~42,000.

Article continues below advertisement

Revenue growth slowed in the last two quarters of fiscal 2017

Revenue growth for Cisco’s Security segment has slowed in the last two quarters. Driven by software and subscription-based services, Cisco’s Security business saw double-digit revenue growth in the five consecutive quarters before fiscal 3Q17.

Cisco Systems has valued the worldwide security market at $11.5 billion for 2016. According to IDC, Cisco dominates this segment with a 15.3% share. Among its peers, Check Point Software Technologies (CHKP), Palo Alto Networks (PANW), Fortinet (FTNT), and China’s (FXI) Huawei have worldwide security market shares of 12.8%, 11.8%, 9.6%, and 3.2%, respectively.

Advertisement

More From Market Realist