Cisco has reported that revenue for the business branch that houses Webex has fallen by ten percent.
The figures were revealed during the company's second-quarter earnings call of fiscal year 2023, in which it was reported that Cisco earned $13.6bn in revenue, up seven percent year-over-year.
The decline in collaboration sales has been put down to a drop in meetings and collaboration devices, according to Scott Herren, Chief Financial Officer, Cisco.
He commented: "Internet for the Future was down 1%, driven by declines in optical and Edge. We saw growth in our Cisco 8000 offering and double-digit growth in web scale.
"Collaboration was down 10%, driven by declines in meetings and collaboration devices, slightly offset by growth in contact center.
"End-to-end security was up 7%, driven by our unified threat management and zero trust offerings."
Q2 FY 2023 is the second quarter running that Cisco has seen a drop in collaboration sales, with a two percent decline in Q1.
Herran declared that the drop in Q1 was again down to a decline in meetings, which he said had been "partially offset by a growth in calling".
Collaboration revenue has been up and down for Cisco, with the company recently seeing its income fall for four consecutive quarters before it saw a slight growth in Q4 FY 2022.
Despite inconsistent sales, Cisco is still making big moves on its collaboration front, as it has recently showcased a new range of collaboration devices for Microsoft Teams and unveiled a new microphone for hybrid working during ISE 2023.
The company said that its innovations are to help organisations achieve a ‘seamless’ hybrid work experience.
Cisco’s partnership with Microsoft will see the Teams platform run natively on Cisco collaboration devices, with certification expected in March 2023.
A Strong FY 2023?
Collaboration sales might be up and down, but FY 2023 is looking to be a strong year of overall growth for Cisco.
