Cisco faces a $14B backlog thanks to component scarcity

Cisco and competitors Juniper and Arista report they have been hit hard by the chip shortage plus supply-chain issues.

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Cisco, like many of its competitors, has found increased revenue from pent-up demand, but chip shortages and other supply constraints continue to loom large over the industry.

“We remain one of the largest software companies in the world,” Cisco CEO Chuck Robbins told investment analysts on an earnings call for its fiscal second quarter ended in January. "In Q2, our software revenue grew by 6% to $3.8 billion, total subscription revenue accelerated to $5.5 billion, up 7% year over year."

Robbins went on to say that it’s important to note “both of these metrics continue to be negatively impacted by subscription software and service that is attached to hardware, where the shipments are delayed due to the component situation.”

Overall, Cisco said its 2Q revenue grew to $12.7 billion, up 6% compared to a year earlier.

Meanwhile, Cisco's current product backlog is nearly $14 billion, an increase of more than 150% year-over-year. Within that amount, software backlog almost doubled to more than $2 billion, according to Cisco CFO Scott Heron.

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