Cisco beats quarterly revenue estimates as supply chain pressures ease

The logo of U.S. networks giant Cisco Systems is seen in front of their headquarters in Issy-les-Moulineaux, near Paris, France August 6, 2022. REUTES/Sarah Meyssonnier/

Aug 17 (Reuters) – Cisco Systems Inc (CSCO.O) beat quarterly revenue estimates on Wednesday as a COVID-19 recovery in China eased supply chain pressures and helped the company meet demand for its networking hardware.

Cisco, which sells routers, switches and communication tools like WebEx, has seen a jump in orders as businesses revive plans to upgrade their infrastructure after a pandemic-induced pause.

The networking major has also benefited from an ease in supply chain shortages after key manufacturing hub China rolled back strict COVID-19 lockdowns imposed since March.

Cisco said it expects first-quarter revenue to rise between 2% and 4%.

For the fourth quarter, it posted a revenue of $13.1 billion, compared with the $12.73 billion expected by analysts, according to Refinitiv IBES data.

Net income fell to $2.8 billion, or 68 cents per share, from $3 billion, or 71 cents per share, a year ago.

Reporting by Yuvraj Malik and Tiyashi Datta in Bengaluru; Editing by Aditya Soni

Our Standards: The Thomson Reuters Trust Principles.

Source:www.reuters.com