Cisco Sales Forecast Falls Short on Slowing Global Economy
- Company relies on corporate technology hardware purchases
- Software unit revenue increased 6% from period a year earlier
This article is for subscribers only.
Cisco Systems Inc. gave a quarterly sales forecast that fell far short of projections, signaling that companies are postponing hardware purchases amid global political and economic uncertainty, including the China-U.S. trade standoff. Shares fell more than 4% in extended trading.
Revenue in the fiscal second quarter will decline 3% to 5% from the same period a year earlier, the San Jose, California-based company said Wednesday in a statement. That indicates sales of about $11.9 billion, compared with an average of analysts’ estimates of $12.8 billion, according to data compiled by Bloomberg. Adjusted profit will be 75 cents to 77 cents a share, also missing analysts’ predictions.