Cisco Systems Inc forecast current-quarter revenue above analysts’ estimates on Tuesday as the pandemic-induced rise in remote working drives up demand for its networking and teleconferencing tools.
With offices staying shut and scores of professionals working from home due to the health crisis, demand for the company’s videoconferencing platform Webex, virtual private network AnyConnect and cybersecurity products has surged.
Cisco said it expects third-quarter revenue to increase between 3.5% to 5.5%, which implies a range between $12.4 billion to $12.64 billion compared with analysts’ estimate of $12.35 billion.
The company’s revenue from the services business rose 2% to $3.39 billion in the second quarter ended Jan. 23.
However, total revenue fell slightly to $11.96 billion, from $12.01 billion a year earlier. Analysts were expecting a figure of $11.92 billion, according to IBES data from Refinitiv.