Cisco confirmed that its Collaboration arm will merge with Networking and Security in a corporate restructuring while outlining that its Collaboration product orders grew “by double digits” in its most recent earnings call.

In its earnings call for Q4 FY24, Cisco CEO Chuck Robbins said that Cisco was bringing its Networking, Security, and Collaboration teams together as one organisation. Experienced Cisco executive Jeetu Patel stepped into an expanded role as the new business’s Chief Product Officer.

Robbins said in a separate blog announcement:

Today, I shared that Jonathan Davidson has made the decision to step away from his current role leading Cisco Networking and will now serve as an advisor to me. With this, we are bringing our Networking, Security, and Collaboration teams together as one organization led by Jeetu Patel as he takes on an expanded role as Cisco’s EVP and Chief Product Officer.”

Robbins also confirmed that once Splunk is fully integrated into Cisco’s portfolio, the Splunk product line will also be incorporated into the new organisation at the right time. “This will bring our entire product portfolio together as one team,” Robbins added.

In other Collaboration tidbits from the earnings call, Collaboration product orders grew by “double digits”.

Richard Scott Herren, Cisco EVP and CFO, highlighted that while product orders are growing, Collaboration sales were flat this past quarter, “driven by growth in our cloud calling and CPaaS offerings, offset by declines in meetings and devices”.

Other Collaboration arms counterbalancing Cisco’s declining meetings and devices revenues is an ongoing trend. The same dynamic occurred in Q3 FY24 when cloud calling and contact centre sales offset the decrease in meetings and devices.

Cisco also announced a seven percent cut in its workforce during its latest earnings call, around 6,000 employees. Robbins cited “a restructuring plan to allow us to both invest in key growth opportunities, as well as drive more efficiency in our business”. Robbins said Cisco’s aim is to “remain laser-focused on growth and consistent execution as we invest to win in AI, cloud, and cybersecurity”.

Cisco’s Financial Health For Q4 FY24 And FY24 Overall

The Q4 FY 2024 financial results indicate a downturn for Cisco, with a 10 percent year-over-year decrease in revenue, amounting to $13.6 billion. This decline is further reflected in the earnings per share (EPS), with GAAP EPS dropping by 44 percent and Non-GAAP EPS by 24 percent compared to the previous year.

Looking at the full fiscal year, revenue decreased six percent to $53.8 billion. GAAP EPS for FY 2024 decreased by 17 percent, while non-GAAP EPS saw a relatively smaller decline of four percent, signalling long-term operational stability despite the revenue decline.

However, Cisco expects positive growth in Q1 FY25, supported by its ongoing investments in AI, cybersecurity, and cloud, improving customer product orders, and the benefits of Splunk’s integration across the Cisco portfolio.

Javed Khan Departs As Cisco Collaboration Head, Anurag Dhingra Steps Up

Last week, Javed Khan departed as Cisco‘s SVP and GM of Collaboration, and Anurag Dhingra, Cisco Collaboration’s Chief Product and Technology Officer, has stepped into the role.

Khan, who spent nine years at Cisco and led Webex for four of those years, departed the company to become President of an AI, mobility, and connected edge business. In a LinkedIn post, Khan expressed that this new role aligns with his passion for leveraging technology to create transformative industry experiences.

Meanwhile, Dhingra, as the Senior Vice President, General Manager, and Chief Product and Technology Officer for Cisco Collaboration, now leads the global team responsible for the comprehensive Webex software suite, which includes Meetings, Calling, Team Collaboration, and Contact Center solutions. Before assuming this position, Dhingra served as Vice President of Webex Meetings, overseeing the delivery of the leading video conferencing platform.



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