Cisco beats earnings target, says has cushioned supply chain from tariffs

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Cisco Systems Inc reported better-than-expected quarterly earnings on Wednesday ...

- Cisco Systems Inc reported better-than-expected quarterly earnings on Wednesday and gave an upbeat sales forecast for the current period, saying that minimal sales exposure to China and changes to its supply chains have helped cushion the blow of U.S.-China trade dispute.

Analysts have been worried about the impact of the trade war on Cisco’s traditional business of selling switches and routers because some are made in China. “We still have products that are being tariffed, but we are reducing the size of that pie,” she said. “We can take some pricing actions to account for the cost.”

Revenue in its software business rose 9% to $1.43 billion, but fell short of estimates of $1.52 billion.

 

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