The network giant Cisco Systems Inc. looking for small revenue growth next quarter, which would be the first such advance since November 2019, but some of its key equipment industries are still hurting from the pandemic.
On Tuesday, Cisco CSCO,
they reported slightly better-than-expected fiscal earnings in the second quarter, as it sees a “gradual improvement” in growth order in its close-up commercial, public and service provider businesses on three-quarters of its production orders. But he also said the corporate-enterprise industry remained soft, due to long sales cycles and stops in spending by companies during the pandemic.
Among the biggest contributors to the pandemic were total revenue of $ 8.6 billion, down 1%, and network infrastructure platforms down 3%.
The company’s WebEx video conferencing business once again showed double-digit revenue growth, as companies continue to use it for group video meetings while employees work from home.
While remote work is a resource for Cisco video conferencing software, it causes delays in some network upgrade projects at corporate domains. Cisco CEO Chuck Robbins said employees who eventually return to the office will help sell infrastructure, such as its moving and routing products, and its software-based networking service, known as CAT 9000.
“I really believe it’s a hybrid, where people work from home and everyone comes ashore here, where they work from home three days a week. and working from the office two days a week and vice versa, ”said Robbins. “The question is what accommodation causes customers, based on employee concerns about space issues, concerns about future pandemics or other concerns. That’s what we don’t know yet. “
He said some customers are now starting to upgrade to the next generation of WiFi, called WiFi 6.
The future of a hybrid workplace also seems to fuel that demand for WiFi 6, Robbins said. Many employees still video conferencing to meetings that take place in the office, placing even more demands on corporate networks.
Cisco said it expects revenue growth in the third fiscal quarter to grow 3.5% to 5.5% year-over-year. The company’s management includes an additional week in the third quarter, noting Cisco’s new Chief Financial Officer, Scott Herren, who took over from Kelly Kramer.
Investors were clearly hoping to get more from Cisco, as they put their shares down as the call went on, with its stock nearly 5% in after-hours trading. Major network construction or upgrades are likely to continue to happen slowly, on a need-to-know basis, while most corporate Americans are still working from home.