Cisco Systems Inc (NASDAQ:CSCO) stock plunges 13.48% (As on May 19, 11:05:13 AM UTC-4, Source: Google Finance) after the company posted mixed result for the third quarter of FY 22 and forecast weak earnings. The product revenue up 3% and service revenue down 8%. Revenue by geographic segment was: Americas up 5%, EMEA down 6%, and APJC down 6%. Product revenue performance was led by growth in Secure, Agile Networks up 4%, Internet for the Future up 6%, End-to-End Security up 7%, and Optimized Application Experiences up 8%. Collaboration was down 7%. In March 2022, in connection with the Russian invasion of Ukraine, Cisco announced its intention to stop business operations in Russia and Belarus for the foreseeable future. The total negative impact to revenue was approximately $200 million in the third quarter of fiscal 2022. Historically, Russia, Belarus and Ukraine collectively, represented approximately 1% of the total revenue. On a non-GAAP basis, total gross margin, product gross margin, and service gross margin were 65.3%, 64.1%, and 68.9%, respectively, as compared with 66.0%, 64.9%, and 68.7%, respectively, in the third quarter of fiscal 2021. Total gross margins by geographic segment were: 64.8% for the Americas, 65.9% for EMEA and 66.4% for APJC.

CSCO in third quarter of FY 22 has reported the adjusted earnings per share of 87 cents, beating the analysts’ estimates for the adjusted earnings per share of 86 cents. The company had reported the adjusted revenue growth of 0.3 percent to $12.84 billion in the third quarter of FY 22, missing the analysts’ estimates for revenue of $13.34 billion. The company delivered Non-GAAP operating income of $4.5 billion, up 4%, with non-GAAP operating margin at 34.7%.

Additionally, in the third quarter of fiscal 2022, the company returned $1.8 billion to stockholders through share buybacks and dividends. The company has declared and paid a cash dividend of $0.38 per common share, or $1.6 billion, and repurchased approximately 5 million shares of common stock under our stock repurchase program at an average price of $54.20 per share for an aggregate purchase price of $252 million. The remaining authorized amount for stock repurchases under the program is $17.6 billion with no termination date.

Cisco Systems expects Q4 2022 EPS to be in the range of $0.76-$0.84, versus the consensus of $0.92. Revenue is expected to range between (1)% to (5.5)% decline year over year. Cisco Systems expects FY2022 EPS to be in the range of $3.29-$3.37, versus the consensus of $3.44.