Cisco CEO Chuck Robbins said the US-China trade war has caused “a significant impact on our business in China”
He said China is not a major part of Cisco’s business but a dramatic change “can still have some impact.”
Cisco shares fell after the company reported a weak outlook.
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Shares of Cisco fell sharply late Wednesday after the tech giant posted as weaker-than-expected forecast, as CEO Chuck Robbins pointed to growing market uncertainty and the impact of the US-China trade war.
“We definitely saw a significant impact on our business in China as it relates to what’s going on with the trade war,” he told analysts during Cisco’s earnings call.
Cisco shares dropped about 8% to $46.60 in late trades, as Wall Street reacted to the company’s disappointing outlook.
Cisco reported a fiscal fourth quarter profit of $2.2 billion, or 51 cents a share, compared with a profit of $3.8 billion, or 81 cents a share, for the year ago quarter. Revenue rose 5% to $13.4 billion. Adjusted income was 83 cents a share.
Analysts were expecting Cisco to report earnings of 82 cents a share on revenue of $13.39 billion. So profit was a slight beat and revenue was …read more
Source:: Businessinsider – Tech