Cisco cyber security growth offsets routers and switches slump

Cisco cyber security growth offsets routers and switches slump

Security business revenue rose by 9 per cent

Credit: Cisco

Cisco has edged past Wall Street estimates for quarterly revenue and profit, as growth in its cyber-security unit helped offset weakness in its routers and switches business.

Revenue in its security business, which offers firewall protection and breach detection systems, rose 9 per cent to US$748 million in the second quarter ended Jan. 25, beating estimates of US$740.2 million.

Infrastructure platform business, which includes the company's traditional business of supplying switches and routers, posted an 8 per cent drop in revenue to US$6.53 billion. Analysts were expecting revenue of US$6.61 billion.

Sales in its application software businesses fell 8 per cent to US$1.35 billion, missing estimates of about US$1.42 billion.

Cisco forecast adjusted profit of 79 cents to 81 cents per share for the current quarter, the midpoint of which was in line with analysts' estimate.

Revenue fell 3.5 per cent to US$12 billion in the second quarter, but still beat analysts' estimate of US$11.98 billion.

Excluding items, Cisco earned 77 cents per share, beating estimates of 76 cents.

Shares of the company fell 2 per cent in extended trading.

(Reporting by Ayanti Bera in Bengaluru; Editing by Anil D'Silva)

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