Cisco Systems Inc (NASDAQ: CSCO) stock fell over 0.6% on May 20th, 2021 (As of 10:57:48 UTC-4 · USD ; Source: Google finance) post third quarter of FY 21.
The company saw broad-based demand across the business, due to the biggest growth opportunities: hybrid work, digital transformation, cloud and continued strong uptake of the subscription-based offerings. The company is also seeing early momentum in the ramping of key technology cycles that are long-term growth drivers for the business, such as 5G, 400 gig and Edge. In Q3, the company saw 10% growth in product orders, which is the highest growth rate since Q1 of fiscal 2012, due to robust improvement across all of the customer segments and geographies. From a product revenue perspective, the company saw 6% growth, led by strength across the portfolio including campus switching, routing, wireless, security, collaboration, and Webscale, as well as from the acquisition of Acacia, which closed during Q3. The company saw strong demand across a majority of the portfolio, led by the next-generation Enterprise Networking and Service Provider solutions, as companies accelerate the modernization of their infrastructure.
Meanwhile, the company has recently launched a new routed optical networking solution, integrating the scalable, high-performance routers and Acacia’s pluggable optics, which offers significant cost savings. Last week, the company had announced the intent to acquire Sedona Systems to extend the cross-work automation platform to build on these capabilities. The company has also expanded the Silicon One platform, from a routing-focused solution to one which addresses the Webscale switching market, offering 10 networking chips ranging from 3.2 terabits to 25.6 terabits per second, making it the highest performance programmable routing and switching silicon on the market. At Cisco Live, the company had launched the new As a Service portfolio, Cisco Plus, and the first offer, Cisco Plus Hybrid Cloud, combining the data center compute, networking and storage portfolio.
Total product revenue was up 6% to $9.1 billion. Service revenue was $3.7 billion, up 8%. Infrastructure Platforms’ revenues was up 6%. Within that, Switching Revenue increased overall with growth in campus driven by strong double-digit growth of the Catalyst 9K products. Routing had strong double-digit growth, driven by strength in the Service Provider market.