Cisco software subscriptions now comprise 70% of the its total software revenue — up 12 points year over year — CEO Chuck Robbins said on the company’s fourth quarter 2019 earnings call today.

Cisco also completely transitioned all of its its switching, routing, and wireless products to subscription-based software, he added.

The company posted Q4 revenue of $13.4 billion, a 6% year-over-year increase, and its fiscal year 2019 revenue grew 7% compared to last year to $51.7 billion.

Robbins called it a “strong end to a great year” before lowering first quarter 2020 guidance to 0% to 2% year-over-year growth, or between $13.07 billion and $13.33 billion. Analysts had expected revenue of $13.4 billion.

He tried to put a positive spin on the weaker-than-expected guidance. “Four years in, and I’m really proud of what our teams have accomplished,” he said. “I don’t really judge where we are on our guidance. We have a strong record of execution, and we’re well positioned for long-term growth opportunities.”

But the guidance, not the positivity or the bottom lines, seemed to be the piece that stuck with investors and sent Cisco shares down 7% in after-hours trading.

Trade tensions with China played a role in weak enterprise and service provider sales in that region, Robbins said. In fact, Cisco’s China revenue dropped 25% on an annualized basis in the fourth quarter.

“We definitely saw significant impact in our business in China as it relates to the trade war right now,” Robbins said, adding that when it comes to some enterprise contracts “we’re not even being invited to bid anymore. It was a much faster decline than what we candidly expected.”

Cisco Chief Financial Officer Kelly Kramer added that service provider revenue also took a hit in China. “We see everything there, from switches, routers, down to security and Meraki [software] products. Everything is being impacted.”

Overall, though, Cisco’s networking and security business performed well. Infrastructure platforms, which include switches and routers, grew 6% year over year to $7.88 billion. And security grew 14% compared to a year ago hitting $714 million for the quarter.