Cisco Systems, Inc. (NASDAQ:CSCO) is investigating its potential violations of the bribery laws of the United States and its resellers in Russia and other countries in Eastern Europe and Central Asia, according to a report from Reuters based in its regulatory filing.
The United States Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) received allegations that some of its businesses and discounting practices violated the U.S. Foreign Practices Act, and requested an inquiry. Cisco Systems, Inc. (NASDAQ:CSCO) launched a probe in response to the request of the regulators.
No material impact to financial results
The network equipment manufacturer said the investigation is expected to have no material impact to its financial results. In its filing, Cisco Systems, Inc. (NASDAQ:CSCO) wrote, “The company takes any such allegations very seriously and is fully cooperating with and sharing the results of its investigation with the Commission and the Department.”
“While the outcome of the Company’s investigation is currently not determinable, the company does not expect that it will have a material adverse effect on its consolidated financial position, results of operations, or cash flows,” added Cisco Systems, Inc (NASDAQ:CSCO). The company said its businesses in the countries involved in the investigation collectively deliver less than 2% of its revenues.
The stock price of Cisco Systems, Inc (NASDAQ:CSCO) was down nearly 1% to $21.33 per share at the time of this writing, around 3:26 PM Eastern Time.
Cisco invests in Badia Impact Fund
Separately, Cisco Systems, Inc (NASDAQ:CSCO) announced its $6 million investment in Badia Impact Fund to support early-stage online and mobile innovation, health care technologies and services, e-commerce, consumer Internet and digital media services in Jordan.
According to the company, the investment represents the first allocation from its $10 million venture capital investment commitment outlined in 2011 for small businesses providing innovative products, services, and solutions.
Cisco Systems, Inc (NASDAQ:CSCO) is an anchor investor of Badia Impact Fund together with European Investment Bank (EIB), the King Abdullah Fund for Development (KAFD). Accelerator Technology Holdings (ATH), the parent company Silicon Badia is the sponsor of the fund.