Cisco 2015 Annual Report Download - page 56

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NGN Routing
Fiscal 2015 Compared with Fiscal 2014
Revenue in our NGN Routing product category increased by 1%, or $95 million, driven by a 6%, or $248 million, increase in
revenue from our high-end router products and a slight increase in revenue from our midrange and low-end router products,
partially offset by 28%, or $171 million, decrease in revenue from other NGN Routing products. Revenue from high-end router
products increased due to an increase in revenue from most products within our Cisco ASR category and the adoption of our
Cisco NCS platform and CRS-X, partially offset by lower sales of our legacy high-end router products. The slight increase in
revenue from our midrange and low-end router products was due to higher sales of our Cisco ISR products, partially offset by
lower sales of certain of our access products. Revenue from other NGN Routing products decreased primarily due to lower sales
of certain optical networking products.
Fiscal 2014 Compared with Fiscal 2013
The decrease in revenue in our NGN Routing product category of 7%, or $559 million, was driven by a 6%, or $278 million,
decrease in revenue from high-end router products; an 8%, or $227 million, decrease in revenue from our midrange and low-end
router products; and an 8%, or $54 million, decrease in revenue from other NGN Routing products. Revenue from our high-end
products decreased due to lower sales of Cisco CRS-3 Carrier Routing System products and our legacy high-end router products,
partially offset by increased sales of our Cisco ASR edge products. The decrease in revenue from our midrange and low-end
router products was driven by lower sales of our Cisco ISR products. Revenue from other NGN Routing products decreased due
to lower sales of certain optical networking products.
Collaboration
Fiscal 2015 Compared with Fiscal 2014
Revenue in our Collaboration product category increased by 5%, or $185 million, due to increased revenue from our Unified
Communications products as a result of higher software revenue and a slight increase in revenue from phones. Higher revenue
from our Cisco TelePresence and conferencing products also contributed to the increase. Revenue from Cisco TelePresence
products increased due to higher revenue in endpoint products as a result of new product introductions. The increase in
conferencing revenue was a result of higher recurring revenue. We continue to increase the amount of deferred revenue and the
proportion of recurring revenue related to our Collaboration product category.
Fiscal 2014 Compared with Fiscal 2013
We continue to increase the proportion of recurring revenue in our Collaboration product category. Overall, revenue in our
Collaboration product category decreased by 6%, or $242 million, primarily due to decreased revenue from our Cisco
TelePresence and Unified Communications products, driven by weakness in endpoint products such as phones. These decreases
were partially offset by higher revenue from our conferencing products.
Service Provider Video
Fiscal 2015 Compared with Fiscal 2014
The decrease in revenue from our Service Provider Video product category of 10%, or $414 million, was driven by a 16%, or
$332 million, decrease in sales of our Service Provider Video infrastructure products, due primarily to lower sales of set-top
boxes. We also experienced a decrease in revenue from cable access products within this product category.
On July 22, 2015, we entered into an exclusive agreement to sell the client premises equipment portion of our Service Provider
Video connected devices business unit to French-based Technicolor. We will continue to refocus our investments in Service
Provider Video towards cloud, security and software-based services.
Fiscal 2014 Compared with Fiscal 2013
Revenue in our Service Provider Video product category decreased by 18%, or $886 million, with the largest driver of the decline
being a 21%, or $812 million, decrease in sales of our Service Provider Video infrastructure products. The revenue decline in
Service Provider Video infrastructure products, which includes connected devices products, was due primarily to lower sales of
set-top boxes.
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