Cisco warns of Chinese backlash over NSA spying as revenue set to fall by 10%

Cisco Systems' has announced its revenue will fall by up to 10 per cent this quarter, a fact it blamed on a backlash against NSA spying revelations in international markets.

The American network giant makes a large proportion of the technology that is used across the world to transmit Internet data. Now, the company has said their sales are particularly suffering from the surveillance leaks in emerging markets, including China, Brazil, Mexico, and India.

The firm also missed its revenue target for the last quarter triggering its shares to fall more than 10 per cent in late trade. The company saw a big fall in sales to telecom and cable service providers, as well as in emerging markets during the period.

Cisco's CFO Frank Calderoni said it was the political kickback in China that is having the biggest effect on profits, but added that it is hard to quantify how much of the shortfall was exactly due to politics rather than macroeconomic trends.

"Between economic and political issues that are occurring in emerging markets we had a significant impact," Calderoni told Reuters in an interview.

The firm said revenue in its top five emerging markets fell by 21 per cent. The highest came in Russia - 30 per cent, followed by 25 per cent in Brazil and an 18 per cent fall in Mexico and China.

One of Cisco's biggest rivals is China's Huawei, which has been all but blacklisted in the US over government concerns its equipment is used by Beijing for spying.

China's Ministry of Public Security was reported close to launching an investigation in August into Cisco rivals including IBM, Oracle and EMC over security issues.