Arista Networks posted strong second-quarter earnings as the vendor barreled through supply constraints spurred by the ongoing semiconductor shortage.

Arista CEO Jayshree Ullal celebrated healthy demand during the quarter, which helped the networking vendor exceed guidance and drove the company to 50 million cloud-networking port shipments in Q2. “We consider this to be a key golden milestone,” she said.

Public cloud providers remained the company’s largest customers in the quarter, followed by enterprise, financial, specialty cloud providers, and managed service providers.

These accomplishments come amid industrywide supply chain shortages and escalating costs for components, Ullal noted. “We’re affected on chips, memory, copper, passive components, rate, logistics, and expedite fees,” she said in response to analyst questions.

The company doesn’t anticipate relief anytime soon either. “The continued industrywide impact of COVID-19 on global supply chain output, combined with an increase in demand for electronics across all segments is expected to remain for the foreseeable future,” Arista Chief Platform Officer John McCool said. “Component lead times are the highest we’ve seen and have roughly doubled from pre-pandemic norms.”

In response, Arista has taken steps to mitigate the impact of supply chain shortages.

“We are increasing purchase commitments for 2022 forecasts to adjust for increased component lead times. We placed additional emphasis on inventory for our new products to offset supply constraints. Finally, we are working closely with our strategic suppliers to plan for capacity expansion programs,” McCool said.

But despite these efforts, he warns that extended lead times and skyrocketing product costs are likely to remain through 2022.

Arista continued to see strong demand in the American market in Q2, driven in large part by the company's cloud customers. Meanwhile, international sales saw a modest increase during the quarter, up 27% year over year, on the heels of a 25% gain in Q1.

The company's revenues topped $707 million during the quarter, up 30% year over year, and posted net earnings of $196.9 million, which was up nearly 27% year over year.

“While we expect continued strength in demand as we move through the second half, we will likely see some deceleration in year-over-year revenue growth given the top-line recovery experience in the back half of 2020,” warned Arista CFO Ita Brennan, during the company’s earnings call.

Additionally, Brennan expects the semiconductor and copper supply chain shortages to have a lasting impact on the company’s lead times, which have already doubled to 16 to 20 weeks.

Despite these headwinds, Arista now expects Q3 revenues in the range of $725 million to $745 million.

Editors note: The original version of this story misstated Arista's product lead times.