Cisco CEO: Product Orders Down As Customers, Partners Focus on Implementation | CRN
CRN – Gina Narcisi
Cisco Systems reported a 20% year-over-year decline in product orders, attributed to customers and partners focusing on installation and implementation following exceptional product delivery over three quarters.
Cisco’s Chairman and CEO, Chuck Robbins, stated that the product shortage has improved and the backlog has returned to normal levels, resulting in a decrease in product orders.
This trend is particularly noticeable in large enterprise and service provider spaces.
However, small business and midmarket customer orders continue, and Cisco expects to return to product growth in the second half of its fiscal 2024 year.
Cisco’s product revenues, led by the Networking segment, experienced a 9% increase, while service revenues saw a 4% increase.
Additionally, Cisco’s announcement of the acquisition of Splunk for $28 billion is expected to enhance customers’ digital resiliency and support strategic growth objectives.
Despite a positive first fiscal quarter in 2024, Cisco’s stock plunged by 10.68% in after-hours trading due to a downward revision in full-year sales outlook, primarily related to the slowdown in new orders.
Link: https://www.crn.com/news/networking/cisco-ceo-product-orders-down-as-customers-partners-focus-on-implementation