(Reuters) -Cisco Systems cut its full-year revenue and profit forecasts on Wednesday in a sign that demand for its networking equipment was slowing, sending the company’s shares down more than 10% after market.
The company has in recent years grappled with supply chain issues and a post-pandemic slowdown in demand, which has hastened its push into software offerings like cybersecurity.
Cisco said it saw “a slowdown of new product orders in the first quarter of fiscal 2024 and believes the primary reason is that customers are currently focused on installing and implementing products in their environments”.
For the full year, the company expects revenue between $53.8 billion and $55.0 billion, and adjusted per-share earnings between $3.87 and $3.93.
Cisco had previously forecast annual revenue of $57.0 billion to $58.2 billion, and adjusted per-share earnings of $4.01 to $4.08.
To accelerate its diversification and capitalize on the boom in artificial intelligence, Cisco in September agreed to buy cybersecurity firm Splunk for about $28 billion in its biggest-ever deal.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Shounak Dasgupta)
