Cisco’s sobering forecast overshadows 3Q earnings

May 10, 2012 • Business

Exterior view of Cisco headquarters in Santa Clara, Calif., Wednesday, May 9, 2012. Cisco Systems Inc.’s quarterly earnings surged 20 percent in the latest sign that a recently completed overhaul is paying off for the world’s largest maker of computer-networking equipment. (AP Photo/Paul Sakuma)

SAN FRANCISCO (AP) — Cisco raised the specter late Wednesday of a jarring slowdown in technology spending, alarming investors already fretting about the economy’s fragile condition.

The red flag hoisted by the world’s largest maker of computer-networking equipment overshadowed a solid showing in Cisco’s most recent quarter.

Investors instead fixated on a sobering forecast for the current quarter from Cisco Systems Inc. CEO John Chambers. He attributed the grim outlook to skittish customers who are waiting longer to close deals and spending less money because of growing concerns about the economy, particularly in Europe and India.

“We are still in an uncertain environment economically,” Chambers told analysts in a conference call.

The cautionary remarks sparked worries that Cisco might be about to fall into a slump Login to read more

Related Posts

Leave a Reply

« »