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Cisco: Service Provider Revenue Shrinks, Overall Revenue GrowsCisco: Service Provider Revenue Shrinks, Overall Revenue Grows

Everything's looking great, says Cisco. Let's just not talk about the service provider business.

Mitch Wagner

February 13, 2019

5 Min Read
Cisco: Service Provider Revenue Shrinks, Overall Revenue Grows

Service provider revenue is shrinking as part of Cisco's business, but overall revenue grew in the most recent quarter, the company said Wednesday.

Cisco Systems Inc. (Nasdaq: CSCO) reported revenue of $12.4 billion, up 7% year-over-year, for the second quarter of 2019. Non-GAAP net income was was $3.1 billion, up 6% year-over-year. Non-GAAP Earnings per share were $0.73, up 16% annually.

Switches, routers and other infrastructure platforms, representing 57% of Cisco's overall revenue, was up 6% year-over-year, to $7.128 billion. Infrastructure is historically the foundation of Cisco's business but is slowly being replaced by software, services and other recurring revenues.

Infrastructure platform growth includes strong customer uptake of the company's Catalyst 9000 switches and SD-WAN services, the company said.

The company's router products declined, due to overall weakness in the service provider market, Cisco said.

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About the Author(s)

Mitch Wagner

Executive Editor, Light Reading

San Diego-based Mitch Wagner is many things. As well as being "our guy" on the West Coast (of the US, not Scotland, or anywhere else with indifferent meteorological conditions), he's a husband (to his wife), dissatisfied Democrat, American (so he could be President some day), nonobservant Jew, and science fiction fan. Not necessarily in that order.

He's also one half of a special duo, along with Minnie, who is the co-habitor of the West Coast Bureau and Light Reading's primary chewer of sticks, though she is not the only one on the team who regularly munches on bark.

Wagner, whose previous positions include Editor-in-Chief at Internet Evolution and Executive Editor at InformationWeek, will be responsible for tracking and reporting on developments in Silicon Valley and other US West Coast hotspots of communications technology innovation.

Beats: Software-defined networking (SDN), network functions virtualization (NFV), IP networking, and colored foods (such as 'green rice').

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