Cisco Revenue Hits Bad Patch
SAN FRANCISCO: Cisco has reported better-than-expected Q3 earnings despite revenue dropping some eight percent year on year and steeper than the four percent decline recorded in Q2.
Cisco’s quarterly revenue was US$11.98 billion, but analysts say the results have been skewed by the impact of the coronavirus.
Cisco’s largest segment, infrastructure platforms, which includes networking switches and routers for corporate datacentres, produced $6.43 billion in revenue, down 15 percent.
Cisco CFO Kelly Kramer said the company saw “manufacturing challenges and component constraints,” as the pace of product orders slowed in April.
The company says it has added many new prospects through free WebEx trials that it anticipates converting to future revenue.