Network supplier Cisco Systems has cut its full-year earnings forecast after COVID lockdowns in China and the war in Ukraine dragged sales below estimates in the third quarter.
Cisco will be facing component shortages over the coming quarters. Cisco said third-quarter revenue growth took a $200 million hit from stopping business in Russia and Belarus.
Cisco revealed that Russia, Belarus and Ukraine collectively, represented approximately 1 percent of total revenue in the previous quarters.
Cisco, which sells networking equipment and software to telecoms and enterprises to connect devices to the internet, expects revenue growth of 2 percent to 3 percent in fiscal 2022, compared with an earlier forecast of 5.5 percent to 6.5 percent.
Cisco is estimating Adjusted profit between $3.29 and $3.37 per share from $3.41 to $3.46 per share earlier.
In the third quarter of fiscal 2022, Cisco closed the acquisition of Opsani, a privately held enterprise software company.
REVENUE DETAILS
Cisco said Q3 FY 2022 revenue was flat at $12.8 billion, with product revenue up 3 percent and service revenue down 8 percent.
Cisco said revenue by geographic segment was: Americas up 5 percent, EMEA down 6 percent, and APJC down 6 percent.
Cisco’s product revenue performance was led by growth in Networks up 4 percent, Internet for the Future up 6 percent, Security up 7 percent, and Optimized Application Experiences up 8 percent. Collaboration was down 7 percent.
Cisco has reported Q3 fiscal revenue of $5.869 billion (+4 percent) from Secure, Agile Networks, $1.1324 billion (+6 percent) from Internet for the Future, $1.132 billion (–7 percent) from Collaboration, $938 million (+7 percent) from End-to-End Security and, $183 million (+8 percent) from Optimized Application Experiences.