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The group only expects sales growth of between 2 and 3 percent for the current fiscal year, as it announced on Wednesday after the US stock market closed. Previously, the forecast was 5.5 to 6.5 percent. Investors temporarily dropped the stock on the NASDAQ by 12.63 percent to $42.25. Cisco CEO Chuck Robbins said that results over the next few quarters depended more on the availability of components like computer chips than demand.
In the past third fiscal quarter (until the end of April), Cisco’s sales stagnated at $12.8 billion compared to the same period last year, well below market expectations. CEO Robbins assured, however, that Cisco will remain in a good position in the long term. According to Cisco, the business freeze in Russia and Belarus, which was decided in the course of the war of aggression against Ukraine, reduced revenues by around 200 million dollars in the past three months. Thanks to lower operating costs, the large manufacturer of computer network equipment nevertheless increased its net profit by six percent to 3.0 billion dollars (2.9 billion euros).
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