Cisco claimed the recent turbulence on the financial markets gave larger customers pause for thought before making purchasing decisions.
There were repeated plunges across the world’s major stock markets in the first few weeks of 2016 amid talk of a financial crisis gathering.
“When there’s uncertainty in the market, enterprise customers just basically say, ‘Hey, look, let’s wait, let’s see what’s going to happen,’” explained Cisco CEO Chuck Robbins on an analyst call at the close of Cisco’s second fiscal quarter.
“They may say let’s wait a week, they may say let’s wait a couple of weeks. But when you’re in the last three weeks of your quarter, those kinds of decisions have an impact.
“The campus refresh opportunities that have been actually pretty consistent for us over the last few quarters, we saw customers say, ‘Hey, our infrastructure is working, so we’re going to just hold on that for some period of time and let’s see where things go.’”
Second quarter revenues at IT industry bellwether Cisco were flat year-on-year at $11.9bn (£8.22bn), including the customer premise equipment portion of its service provider video business that it sold in November 2015, but grew 2% on the quarter the year before, excluding that figure.
Net profit, meanwhile, rose by a third compared to this time the year before, hitting $3.9bn. As a result, Cisco CFO Kelly Kramer declared a 24%, or five cent, increase in Cisco’s dividend.
There were repeated plunges across the world’s major stock markets in the first few weeks of 2016 amid talk of a financial crisis gathering.
“When there’s uncertainty in the market, enterprise customers just basically say, ‘Hey, look, let’s wait, let’s see what’s going to happen,’” explained Cisco CEO Chuck Robbins on an analyst call at the close of Cisco’s second fiscal quarter.
“They may say let’s wait a week, they may say let’s wait a couple of weeks. But when you’re in the last three weeks of your quarter, those kinds of decisions have an impact.
“The campus refresh opportunities that have been actually pretty consistent for us over the last few quarters, we saw customers say, ‘Hey, our infrastructure is working, so we’re going to just hold on that for some period of time and let’s see where things go.’”
Second quarter revenues at IT industry bellwether Cisco were flat year-on-year at $11.9bn (£8.22bn), including the customer premise equipment portion of its service provider video business that it sold in November 2015, but grew 2% on the quarter the year before, excluding that figure.
Net profit, meanwhile, rose by a third compared to this time the year before, hitting $3.9bn. As a result, Cisco CFO Kelly Kramer declared a 24%, or five cent, increase in Cisco’s dividend.
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