Cisco expects 8.5% drop in revenue in current quarter

Cisco said it’s expecting 8.5 percent to 11.5 percent decline in revenue for the fiscal fourth quarter.
Cisco for telecomsCisco reported revenue of $12 billion (–8 percent) during third quarter for the period ended April 25, 2020.

Cisco generated revenue of $7.116 billion (–8 percent) from Americas, $3.136 billion (–7 percent) from EMEA, and $1.730 billion (–9 percent) from Asia Pacific including India, Japan and China.

Cisco saw manufacturing challenges and component constraints, finance chief Kelly Kramer told analysts on a conference call on Wednesday. She said the pace of product orders slowed down in April.

Cisco’s largest segment, Infrastructure Platforms, which includes networking switches and routers for corporate data centers, produced $6.43 billion in revenue, down 15 percent year over year.

The Applications segment, which contains among other things the Webex video-calling service, generated revenue of $1.36 billion, down 5 percent.

Cisco’s security business generated revenue of $776 million (+percent).

Cisco has added many new prospects through free WebEx trials that we anticipate converting to revenue in the future, CEO Chuck Robbins said on the conference call.

Cisco closed the acquisition of Exablaze, a designer and manufacturer of advanced network devices aimed at reducing latency and improving network performance, in the third quarter of fiscal 2020.