Cisco revenue drops for fifth straight quarter

Cisco Systems has reported a decline in revenue for a fifth straight quarter, as enterprise clients spent less on its network infrastructure products for offices due to the rise of remote working.
Cisco MWC 2018 BarcelonaCisco chief financial officer Richard Herren said on a call with analysts that the infrastructure platforms unit, whose sales fell 3 percent in the quarter, took the biggest hit from the COVID-19 pandemic.

The company’s total revenue fell slightly to $11.96 billion in the second quarter ended Jan. 23, from $12.01 billion a year earlier.

The remote working trend boosted demand for the company’s videoconferencing platform Webex, virtual private network AnyConnect and cybersecurity products.

Revenue from the company’s services business rose 2 percent to $3.39 billion.

Cisco said it expects third-quarter revenue to increase between 3.5 percent to 5.5 percent, which implies a range of $12.4 billion to $12.64 billion compared with analysts’ estimates of $12.35 billion.

A recent Gartner report said IT spending is projected to total $3.9 trillion in 2021, an increase of 6.2 percent from 2020. Worldwide IT spending declined 3.2 percent in 2020 as CIOs prioritized spending on technology and services that were deemed mission-critical during the initial stages of the pandemic, Gartner report said.