Cisco has seen its collaboration sales drop for a fourth consecutive quarter.
The networking giant saw revenue in the unit dip seven percent to just over $1.1bn, owing to declines in activity across video meetings, calling and contact centre.
The collaboration division largely took a back seat when the results were announced, with investors and analysts more concerned with a forecast drop revenue decline in the vendor’s networking unit, which accounts for more than half of sales.
Cisco expects income in Q4 to drop somewhere between one and 5.5 percent, driven by inflation and production delays triggered by lockdowns in China.
Sales in the vendor’s Q3 were flat at $12.8bn.
The vendor revealed that the abrupt halting of sales in Russia and Belarus as a result of the war in Ukraine took a $200m chunk out of its income.
Revenue in the two countries and Ukraine had previously accounted for one percent of sales.
CEO Chuck Robbins was, however, upbeat and said that demand from customers is still there despite the struggle with components and production, revealing that the decline in collaboration sales was partially offset by strong demand for its CPaaS offering.
“We believe that our revenue performance in the upcoming quarters is less dependent on demand and more dependent on the supply availability in this increasingly complex environment,” he said.
“While certain aspects of the current situation are largely out of our control, our teams have been working on several mitigation actions to help alleviate many of the component issues that we’ve been facing.”
