RESEARCH TRIANGLE PARK – Supply chain challenges are affecting Cisco’s opportunity to benefit from growing global demand to implement more digitalization in the wake of COVID-19, Cisco CEO Chuck Robbins lamented Wednesday in discussing its quarterly earnings report.
“We continue to see great momentum in our business as customers are looking to modernize their organizations for agility and resiliency,” Robbins said in a statement. “The demand for Cisco (Nasdaq: CSCO) technology is strong with our Q4 performance marking the highest product order growth in over a decade. With the power of our portfolio, we are well positioned to help our customers accelerate their digital transformation and thrive in a hybrid world.”
Yet in a conference call with analysts, Robbins said profit growth has not kept pace with demand.
“It’s overwhelmingly driven by the component costs and the contract manufacturing costs,” Robbins said, according to Bloomberg news.
Robbins also noted that “”Notwithstanding what’s going on in the supply chain, our revenue guide would have been higher, which could have probably flowed through to improving EPS as well,” Reuters reported.
Cisco reported quarterly revenues of $13.13 billion, earnings of $3.01 billion and per share earnings of 84 cents, each of which exceeded analysts’ expectations.
The tech giant operates one of its largest corporate campuses in RTP.