Cisco drops on poor guidance, says China business dropped 25%

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Cisco drops on poor guidance, says China business dropped 25%.

83 cents per share, excluding certain items, vs. 82 cents per share as expected by analysts, according to Refinitiv.Revenue grew 6% on an annualized basis in the quarter, according to a"We did see in July some slight early indications of some macro shifts that we didn't see in the prior quarter," Cisco CEO Chuck Robbins told analysts on a Wednesday conference call. He said in the quarter Cisco company saw "significant impact" on business in China because of the U.S.

In China, Cisco's revenue was down 25% on an annualized basis in the quarter, Kelly Kramer, the company's chief financial officer, said on the call. "What we've seen is in the state on enterprises ... we're just being -- we're being uninvited to bid," Chambers said. "We're not being allowed to even participate anymore." Sales to carriers declined more forcefully as well, he said.

The majority of Cisco's revenue comes from sales of data center networking products, including switches and routers. That business is represented by Cisco's Infrastructure Platforms segment, which came up with quarterly revenue of $7.88 billion, above the $7.84 billion consensus among analyst polled by FactSet.

The Applications segment had $1.49 billion in revenue, in line with the $1.49 billion FactSet analyst consensus. Cisco's Security business contributed $714 million in revenue, less than $739.9 million FactSet consensus estimate.

 

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I think you have a mistake. A quote is attributed to Chambers. Is it correct? - 'What we've seen is in the state on enterprises ... we're just being -- we're being uninvited to bid,' Chambers said.

Impossible ... Looks like Chinese tech boom is over...

wait, so we operate in a global economy and hurting our trade partners also hurts US companies?

Ericardo4

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