How much revenue growth did Cisco really earn from Flip and TelePresence?

My perspective on the "dollar amount success" with regard to the100% increase in TelePresence revenue got a little bit more transparent with Cisco's latest SEC filing.

Lately, I've been trying to put into perspective the "dollar amount success" for 2 of Cisco's much ballyhooed products, the Flip video camcorder and the Cisco TelePresence video solution. Since I don't have any inside information on which to make dollar amount conclusions, I've had to rely totally on what Cisco has made available to the public, for instance, during Cisco's F1Q10 earnings call, John Chambers boasted:

"To give you some additional color on our progress in this area, we talked earlier about tele-presence revenues once again growing in excess of 100% year over year, a proof point that our customers truly understand productivity and value that video delivers internally and with their own customers and partners. Other product areas that may be of interest to you from a revenue perspective including tele-presence had increases over 100% and we added approximately 85 new customers in Q1. Pure Digital’s [Lift] had revenues of approximately $50 million and CRS revenue was up approximately 7% year over year."

Interestingly (at least to me), I think I may have hit "pay dirt" with Cisco's latest Form 10-Q filed with the SEC earlier this week (page 38), which, if not offering absolute numbers, finally allows me to place some sort of "dollar amount success" on the Flip video camcorder and Cisco TelePresence products:

"While we did experience a sequential revenue increase in many of our product categories, our net product sales declined year over year across almost all of our product categories in the first quarter of fiscal 2010, except for sales of our products under the category of other, which reflected positive year-over-year revenue growth as well as positive sequential revenue growth. The year-over-year and sequential revenue increase in that category was driven by sales of Flip video cameras from our fiscal 2009 acquisition of Pure Digital Technologies, Inc. ('Pure Digital'), and increased sales of Cisco TelePresence systems."

Cisco's 1st Quarter Other Product Revenue By Fiscal Year: F1Q10 - $481 million (page 35) +$42 million increase F1Q09 - $439 million (page 35) -$71 million decrease F1Q08 - $510 million (page 40) +$55 million increase F1Q07 - $455 million (page 33) So according to Cisco's F1Q10 earnings call and latest SEC Form 10-Q filing, Flip video camcorder revenue combined with a stunning 100% increase in Cisco TelePresence revenue produced a mind-boggling $42 million increase in Cisco revenue. All of this points out that even though Cisco makes a lot of noise about the possibilities of videoconferencing, relatively speaking, it's still a tiny business for Cisco -- so small that they bury it in the "other" category, along with the Flip, optical (which appears to be closing down) and who knows what else.

Even more revealing (again at least to me), during the Cisco F1Q09 earnings call, Chambers didn't mention a "peep" about the revenue growth of TelePresence. I find that revealing and interesting because Cisco's Other Product category revenue (which includes TelePresence) fell by -$71 million during Cisco's F1Q09?


What's your take, does Flip video camcorder revenue and a 100% increase in TelePresence revenue have the wherewithal to create a financial windfall for Cisco shareholders?

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