Cisco 2013 Annual Report Download - page 58

Fiscal 2012 Compared with Fiscal 2011
For fiscal 2012, as compared with fiscal 2011, product revenue in our Switching category increased by 3%, or $412 million. The
increase was primarily due to growth from transitioning products taking place in our Switching product portfolio. The impact of
competitive pressures moderated growth, primarily in the first and fourth quarters of fiscal 2012. Within our Switching product
category, higher sales of LAN fixed-configuration switches and storage products were partially offset by lower sales of modular
switches. Sales of LAN fixed-configuration switches increased by 11%, or $819 million, while sales of modular switches decreased
by 8%, or approximately $468 million. The increase in sales of LAN fixed-configuration switches was primarily due to increased
sales of Cisco Catalyst 2960 Series Switches, Cisco Nexus 2000 and 5000 Series Switches, and the Cisco Catalyst 3750 Series
Switches, partially offset by decreased sales of Cisco Catalyst 3560 Series Switches. Product revenue in our Switching category was
positively impacted by a 12% increase in sales of storage products, primarily stemming from strong growth in the first and fourth
quarters of fiscal 2012. Sales of modular switches decreased primarily due to lower sales of Cisco Catalyst 6500 and 4500 Series
Switches, partially offset by increased sales of Cisco Nexus 7000 Series Switches.
NGN Routing
Fiscal 2013 Compared with Fiscal 2012
Sales in our NGN Routing product category decreased by 2%, or $152 million, driven by a 3%, or $142 million, decrease in sales of
high-end router products and an 8%, or $58 million, decrease in sales of other NGN Routing products. These decreases were partially
offset by a 2%, or $47 million, increase in sales of our midrange and low-end router products. Within the high-end router product
category, we experienced lower sales of our Cisco CRS-1 and CRS-3 Carrier Routing System products and our legacy high-end router
products, partially offset by continued adoption of our Cisco Aggregation Services Routers (ASR) products. Higher sales in our
midrange and low-end router products were driven by the continued adoption of our Cisco Integrated Services Routers (ISR) platform.
The decline in sales of other NGN Routing products was due to decreased sales of certain other routing and optical networking products.
Fiscal 2012 Compared with Fiscal 2011
For fiscal 2012, as compared with fiscal 2011, product revenue in our NGN Routing product category increased by 2%, or $196 million.
The increase in sales of our NGN Routing product category was driven by a 7%, or $332 million, increase in sales of high-end router
products, partially offset by a 3%, or $87 million, decline in sales of our midrange and low-end router products. Within the high-end
router products category, the increase was driven by higher sales of Cisco CRS-3 Carrier Routing System products and higher sales of
the Cisco ASR 9000, 5000, and 1000 family of products. These increases were partially offset by lower sales of Cisco 7600 and 12000
Series Routers. Within the midrange and low-end router products category, the decrease was related to the product transition taking
place within our Cisco ISR products, as the sales decline in our older generation products had a greater impact than the growth
experienced with our Cisco ISR 1900, ISR 2900, and ISR 3900 router products in this category. Sales of other NGN Routing products
decreased by 6%, compared with fiscal 2011, primarily due to decreased sales of other routing and optical networking products.
Service Provider Video
Fiscal 2013 Compared with Fiscal 2012
Our Service Provider Video products category grew by 26%, or $991 million, due primarily to the acquisition of NDS at the
beginning of fiscal 2013. Higher revenue from our connected devices and higher revenue from our video software and solutions
also contributed to the increase. The increase in sales of connected devices products was primarily due to increased sales of cable
set-top boxes.
Fiscal 2012 Compared with Fiscal 2011
For fiscal 2012, as compared with fiscal 2011, sales of Service Provider Video products increased by 10%, or $346 million, due
to growth in our service provider customer market from increased sales of set-top boxes worldwide. Sales in connected devices
increased by 19%, or $408 million, sales in video software and solutions increased by 18%, or $39 million, while sales in cable
access decreased by 9%, or $100 million.
Collaboration
Fiscal 2013 Compared with Fiscal 2012
Our Collaboration product category continues to shift its focus to recurring revenue streams driven by SaaS offerings. Overall,
sales of Collaboration products decreased by 6%, or $237 million, primarily due to a decline in sales of Cisco TelePresence
Systems and, to a lesser degree, a decline in sales of Unified Communications products. Lower public sector spending in the United
States, as well as demand weakness in Europe, were significant drivers of the decline in sales of Cisco TelePresence Systems. We
also experienced a decline in sales of Unified Communications products, which was due primarily to lower sales of Unified
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