On February 14, Cisco released its second quarter 2019 financial report. The report shows that Cisco's net profit in the second quarter was US$2.8 billion, compared with a net loss of US$8.8 billion in the same period last year. Cisco's net revenue in the second quarter was US$12.446 billion, an increase of 5% from US$11.887 billion in the same period last year. Cisco's second-quarter results and third-quarter performance outlook exceeded analysts' expectations. After-hours stock price rose nearly 4%. The current stock price is US$47.5, with a total market value of US$213.6 billion. The reason for Cisco's huge loss in the same period last year was that the financial report included one-time expenses totaling US$11.1 billion related to the US Tax Cuts and Jobs Act.
Both are network equipment suppliers, Cisco and China's Huawei have always been old rivals. In 2017, Huawei's share of the core router market surpassed Cisco's, becoming the first in the global market. The two have been involved in patent lawsuits, and Cisco has also used some non-commercial reasons, such as allegedly threatening the national security of U.S. communications, to curb Huawei's development. Recently, Huawei has frequently been in the limelight in 5G, but why has its old rival Cisco not stepped forward? That's because its share in some major product areas has fallen from 60% to less than 50%. In the enterprise-level high-end market, Cisco faces competition from Juniper, Huawei and HP; in the low-end product field, it also faces competitive pressure from companies such as Dell and Huawei. Among all competitors, Huawei faces the greatest challenge, which makes Cisco feel an unprecedented threat.
Cisco is an American network equipment supplier and was once the world's most valuable company. At its peak, routers accounted for nearly 80% of the world's share. Cisco's total revenue in the second quarter of this year was US$12.446 billion, of which the main business was data center switches and routers, with revenue of US$7.128 billion, a year-on-year increase of 6%; revenue from the application business was US$1.465 billion, a year-on-year increase of 24% ; Revenue from the security business was US$658 million, a year-on-year increase of 18%; revenue from other products was US$22 million, a year-on-year decrease of 59%.
Cisco’s main market is the United States. In the second quarter, revenue from the United States was US$7.352 billion, revenue from Europe, the Middle East and Africa (EMEA) was US$3.223 billion, and revenue from the Asia-Pacific region to US$1.872 billion.