Ever since former National Security Agency contractor Edward Snowden revealed elaborate cooperation between U.S. Internet and telecommunications firms and the the nation's intelligence service, Washington has been watching to see the companies involved would be hurt.

Cisco this week became the one of the first companies to say publicly that its sales were down as a direct result of the NSA disclosures. The issue is whether overseas clients are reluctant to buy Cisco's telecommunications equipment for fear that the organization would gain access to their systems.

On an investor conference call Wednesday, Benjamin Reitzes of Barclays Capital asked Cisco CEO John Chambers whether the allegations had caused a slump in Cisco's emerging market business, adding, "It is an impact in China."