Cisco Australia net profit reaches AU$32m for FY18

Cisco's Australian operations reached AU$32 million in net profit for the 2018 financial year, on revenue of AU$1.85 billion.
Written by Corinne Reichert, Contributor

Cisco Australia has published its full-year results for the 2018 financial year, revealing a rise in net profit from AU$30.2 million to AU$32 million.

This was despite a slight drop in revenue, from AU$1.87 billion in FY17 down to AU$1.85 billion in FY18. Of this, Cisco Australia made AU$1.13 billion from the sale of goods, and AU$410.1 million from professional services.

Cisco's total comprehensive income for the year was AU$31.1 million, up from AU$30.6 million, according to documents filed with the Australian Securities and Investments Commission (ASIC).

As of July 28, 2018, Cisco Australia had cash and cash equivalents of AU$228.1 million, up from AU$185.8 million, and net assets of AU$365.6 million, up from AU$339.6 million a year earlier.

During the financial year, Cisco Australia had moved into the small and medium-sized business (SMB) market segment, and announced in July the launch of its Cisco Start portfolio following 18 months of trials down under.

At the time, head of Distribution, Channels, and SMB Segment for Cisco ANZ Nykaj Nair said the networking giant's dedicated SMB portfolio is aimed at providing solutions across collaboration, mobile platforms, wireless offerings, hybrid cloud infrastructure, and cybersecurity capabilities.

"Cisco has invested in a purpose-built dedicated portfolio for small businesses called Cisco Start. Cisco Start allows small businesses to adopt enterprise-like technology or enterprise-class technology at affordable costs," Nair said.

"Enterprise-class technology that's reliable, that's simple, and that's secure. The way the portfolio is designed, it takes into account the scalability that a small business needs as they grow. So the platform grows as they grow, and we've built flexible consumption models for SMBs to alleviate any of the cash-flow concerns that small businesses usually have."

Speaking with ZDNet, Cisco ANZ vice president Ken Boal said Cisco's acquisitions of Meraki, OpenDNS, and BroadSoft enabled it to push into the SMB space.

Cisco Australia's parent company in August announced net income of $3.8 billion in Q4, or 81 cents per share. Non-GAAP earnings were 70 cents per share on revenue of $12.8 billion, up six percent year over year. Wall Street had been looking for earnings of 69 cents per share on $12.7 billion in revenue.

Broken down by segment, Cisco made $9.6 billion in product revenue for Q4, up 7 percent, and $3.2 billion in service revenue, up 3 percent. Infrastructure platforms revenue grew by 7 percent to bring in $7.44 billion; applications revenue increased by 10 percent to reach $1.3 billion; security revenue grew by 12 percent to $627 million; and services grew 3 percent to bring in $3.2 billion in revenue.

"Our results demonstrate a combination of strong customer adoption of our latest innovations, the ongoing value customers see in our software and subscription offerings, and excellent execution across our customer segments and geographies," Cisco CEO Chuck Robbins said at the time.

"Our strategy is working and we believe that are well-positioned to capture growth across our portfolio with our pipeline of innovation."

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