Cisco $ 15 billion default: China worries about COVID, the impact of the war in Ukraine

The global uncertainties created by the ongoing closures of COVID and the war in Ukraine continue to affect the business of Cisco and its network competitors.

Cisco’s third-quarter earnings, announced this week, show another round of growing backlogs, this time to $ 15 billion with an additional $ 2 billion in software backlogs and $ 200 million in profits from the company, which is withdrawing business from Russia due to the invasion. you are in Ukraine. Total quarterly revenue of $ 12.8 billion was equal on an annual basis, while total product revenue grew 3%.

According to Cisco CEO Chuck Robbins, two major factors had the biggest impact on third-quarter revenue. “The first is the war in Ukraine, which led to the cessation of our operations in Russia and Belarus and had a corresponding impact on revenue,” he said. “The second is related to the blocking of COVID in China, which began in late March. These blockages have led to an even more serious shortage of certain critical components. “

“Historically, Russia, Belarus and Ukraine together account for approximately 1% of our total revenue,” Cisco CFO Scott Herren told analysts during a call for profit.

As for the situation in China, Shanghai now says it will open on June 1, Robbins said, but it is still uncertain when supplies will resume. Even when they do, he believes delivery routes will be congested. “We believe there will be a lot of competition for port capacity, airport capacity,” Robbins said.

The lack of a supply chain also continues to harass others, including Arista Networks and Extreme Networks.