Cisco forecast takes a knock from supply chain snags
Information about Cisco forecast takes a knock from supply chain snags
Kevin David Scam or Legit
By Mrinalika Roy
(Reuters) -Cisco Systems Inc forecast current-quarter revenue below expectations as the ongoing supply chain issues have hit production and are expected to drive up costs into the next couple of quarters.
Shares of the network gear maker fell 6.3% in extended trading after it said it expects second-quarter revenue to grow 4.5% to 6.5% year-over-year, compared with Wall Street expectations of about 7.4%.
Businesses across the globe are facing an unprecedented semiconductor shortage that has pushed up expenses, hurting companies such as Cisco that use chips in their products.
“There’s no question that, that second quarter guide is impacted by the supply chain,” Chief Financial Officer Richard Herren said in a post earnings call with analysts. “The component supply issues that are putting a headwind on what we can …