Cisco Predicts Profit Below Estimate This Quarter

Share post:

Cisco Systems said Wednesday that supply chain problems will persist through 2021 as it forecast a below-estimates profit for the current quarter, sending its network shares down 5% on Wednesday.

The tech industry is currently facing a chip shortage which has severely affected production in many semiconductor industries.

Cisco’s fourth-quarter profit was 81 to 83 cents per share, compared with an estimated 85 cents per share, and revenue growth is pegged at 6 to 8%.

In an interview, Cisco Chief Financial Officer Scott Herren said the current chip shortage is temporary.

Revenue in the third quarter that ended May 1 rose 7% year-on-year to $12.80 billion, beating analysts’ forecasts of $12.56 billion.

The company’s service revenues increased by 8% and product revenues by 6% as demand for video conferencing, virtual private networks and cybersecurity products boosted sales.

The company is also on track to break the $14 billion mark in software sales over the next 12 months.

Net income rose to $2.86 billion, or 68 cents per share, from $2.77 billion, or 65 cents per share.

For more information, read the original story in Reuters.


Related articles

Kaspersky to shut down its US business due to sanctions

Russian cybersecurity firm Kaspersky Lab announced it will cease its U.S. operations starting July 20, following sanctions from...

Intuit lays off 1,800 people amid a shift to AI

Intuit, the company behind QuickBooks, Credit Karma, and TurboTax, is laying off 1,800 employees, which is about 10%...

VMWare revenue drops by $600 million but Broadcom assures investors growth plan is on track

In its first full quarter under Broadcom's ownership, VMware's revenue fell by $600 million, dropping to $2.7 billion....

Apple faces backlash over recent ads

Apple is currently facing significant public backlash due to a controversial advertisement featuring a hydraulic press crushing various...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways