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Companies

Cisco's China revenue drops 25% and outlook dims amid trade war

Share price falls as US company says main products soon to be hit by tariffs

Cisco says it is no longer allowed to bid on some contracts from Chinese state-owned enterprises.   © Reuters

PALO ALTO, U.S. -- Network equipment maker Cisco Systems said on Wednesday its China revenue fell 25% in the past quarter due to the ongoing trade war and provided weaker guidance for the next quarter as the U.S. company expects its main products to be hit by tariffs soon.

"We definitely saw a significant impact on our business in China as it relates to the trade war right now," said Cisco CEO Chuck Robbins on the Wednesday earnings call, adding that when it comes to some enterprise contracts in China "we're being uninvited to bid. We are not being allowed to even participate anymore. It was a much faster decline than what we candidly expected."

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