Cisco blames revenue fall on NSA leaks backlash
Recent revelations about internet surveillance by the US National Security Agency had prompted a “level of uncertainty or concern” among customers internationally that had contributed to sliding demand, Frank Calderone, chief financial officer, said.
New orders fell 12 per cent in the developing world, with Brazil down 25 per cent and Russia off 30 per cent, a sharp reversal from the 8 per cent jump seen in the preceding three months.
The collapse coincided with the international furore over disclosures that the NSA had taken advantage of the strong position of US technology companies to extend its surveillance of the global internet, raising concerns about a backlash against American companies such as Cisco.
The forecast came as a shock to Wall Street analysts who had been expecting growth of 6 per cent, leading to a 10 per cent fall in Cisco’s shares in after-market trading on Wednesday.
Sooner than I thought
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