Cisco cuts ties with ZTE after Iran sales Cisco said it had cut ties with ZTE after an internal probe revealed that the Chinese company had sold Cisco's equipment to Iran. Sales of US technology products to Iran have been banned by the US government, but ZTE is understood to have sold Cisco internet routers to the company that controls the Telecommunication Company of Iran (TCI). Reuters revealed this year that such sales were taking place, a report that led to international investigations by both companies, as well as investigations by the US Commerce Department, a congressional committee and the Federal Bureau of Investigation. Cisco, which has been in a distribution agreement with ZTE for the past seven years, confirmed on Monday that it now had "no current relationship with ZTE." ZTE was a reseller of Cisco equipment in Asia, excluding Japan, and the Middle East. ZTE, which is predominantly owned by Chinese state entities, said it was "highly concerned with the matter and is communicating with Cisco. At the same time, ZTE is actively co-operating with the US government about the probe regarding Iran. We believe this issue will be properly addressed. The break with Cisco came as ZTE, together with Huawei, was named as a threat to national security by a US congressional intelligence committee. The two have been barred from supplying equipment to US government networks. Last month, both ZTE and Huawei were criticised by the US House of Representatives intelligence committee for allegedly stealing trade secrets from US companies, such as Cisco and Motorola, and for posing security threats to critical US infrastructure. Executives from both companies denied the claims at the committee hearings. Cisco has had a rocky relationship with Huawei and ZTE. The US internet infrastructure group filed a lawsuit against Huawei in 2003 for copying its intellectual property but dropped the suit a year later. Reuters said ZTE supplied other US-based technology to Iran, including HP computer parts and printers, Microsoft Windows software, Dell flatscreen monitors, Oracle database products and Symantec antivirus software. ZTE reported a steep drop in profits for the June quarter. It blamed the 85 per cent fall in net profits year-on-year on the eurozone crisis and poor consumer demand, but analysts in the industry said blocks on supplying equipment to countries were taking their toll.