Ukraine conflict, lockdowns weigh on Cisco - Mobile World Live

Ukraine conflict, lockdowns weigh on Cisco

19 MAY 2022

Cisco CEO Chuck Robbins remained confident the business will improve after the company took a $200 million hit on revenue in its fiscal Q3 2022 (the three months to end-April) due to Covid-19 (coronavirus) lockdowns in China and a war in Ukraine.

The US-based vendor reported the war and lockdowns added $5 million to its cost of sales along with an additional $62 million in operating expenses.

Cisco announced in March it would no longer conduct business in Russia or Belarus for the foreseeable future due to the war.

Historically, Russia, Belarus and Ukraine combined have represented approximately 1 per cent of the company’s total revenue.

Despite the challenges and supply chain constraints, Robbins stated Cisco “continued to see solid demand” for its technologies, leaving it “confident in the long term”.

Net profit increased 6 per cent year-on-year to $3 billion, with revenue flat at $12.8 billion.

In its earnings statement, Cisco noted the recent quarter spanned 13 weeks compared with 14 in fiscal Q3 2021.

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Mike Robuck

Mike Robuck is the U.S. Editor at Mobile World Live. He joined the Mobile World Live staff in February of 2022. Prior to joining GSMA, he was editor of FierceTelecom and of Light Reading’s Telco Transformation microsite. He has a...

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