Cisco Falls as Sales Forecast Misses Estimates on Supply Issues
- Revenue guidance, quarterly results fall short of estimates
- Company trying to reduce reliance on traditional gear sales
This article is for subscribers only.
Cisco Systems Inc., the biggest maker of computer networking equipment, gave a lackluster revenue forecast for the current period, hurt by a shortage of components that’s making it difficult to keep up with demand. Shares declined about 6% in extended trading.
Sales in the fiscal second quarter will increase 4.5% to 6.5% from a year earlier, the San Jose, California-based company said Wednesday in a statement. That fell short of analysts’ average estimate of 7% revenue growth, or $12.8 billion.