Despite falling profits, Cisco – thanks to easing problems with chip supply – exceeded analysts’ expectations in the most recent quarter.
The US network supplier Cisco performed better than expected in the most recent quarter thanks to easing problems with the chip supply. In the three months to the end of July, sales stagnated year-on-year at $13.1 billion (€12.9 billion), as Cisco announced. Profits fell 6 percent to $2.8 billion. Experts had expected a much stronger decline.
Cisco CFO Scott Herren said that the group is now better able to cope with the stresses caused by disrupted supply chains worldwide. As a manufacturer of so-called routers and switches for Internet and data traffic and provider of the video conference service Webex, Cisco initially benefited from the trend towards working from home during the pandemic. But in recent quarters, the business has suffered from a shortage of important components — particularly computer chips.
In the meantime, however, the supply situation has eased somewhat and the outlook has brightened again. Cisco is forecasting sales growth of two to four percent for the current quarter compared to the previous year. For the entire new 2023 fiscal year, Cisco expects revenue to increase by four to six percent. The company was more optimistic than Wall Street had expected.
Source: com! professional by www.com-magazin.de.
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