Cisco revenue misses estimates on lower demand for network hardware

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Nov 17 (Businesshala) – Cisco Systems Inc (CSCO.O) on Wednesday missed Wall Street’s expectations for first-quarter revenue, hurt by a lack of demand for on-campus network hardware as businesses operate on the cloud, Send your shares down around 6. % in extended business.

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The San Jose, Calif.-based company is shifting its focus to software including videoconferencing tool WebEx and cybersecurity services to help customers adapt to online workspaces.

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Industry experts say Cisco will benefit from the boom in cloud computing and 5G adoption in the fast-growing digital world. However, supply issues, including chip shortages and shipping constraints, have prevented the company and its peers from capitalizing on strong demand and are expected to continue to impact the sector in the near term.

The company forecasts revenue growth of between 4.5% and 6.5% in the second quarter.

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Net income for the quarter rose to $3 billion, or 70 cents per share, from $2.2 billion, or 51 cents per share, a year ago.

Revenue for the quarter ended October 30 was $12.90 billion. Analysts were expecting an average of $12.98 billion in revenue, according to Refinitiv’s IBES data.

Reporting by Chhavi Mehta and Mrinalika Roy in Bengaluru; Editing by Vinay Dwivedi

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