Networking supplier Cisco has cut its sales forecast for the current fiscal year after just the first three months. This was poorly received by investors: shares temporarily fell about ten percent in after-hours trading in the US on Wednesday.
Cisco indicated a slowdown in new orders. The group now expects revenues of between $53.8 and $55 billion for the fiscal year, which runs until the end of July 2024.
After the previous quarter, Cisco expected sales of $57 to $58.2 billion. This development could be a signal that companies are putting their IT spending on the line. Cisco is currently trying to get more business from its customers through its networking technology aftermarket services.
In the most recent fiscal quarter, Cisco’s sales increased eight percent to $14.7 billion. The bottom line is that profits grew 36 percent to $3.6 billion.
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