Cisco sees lower growth pattern continuing

Cisco Systems has been trying to return to its traditional goal of having 12 percent to 17 percent growth rate, but Cisco CEO John Chambers said the wobbly economy is making it more challenging than previously thought. Cisco now expects revenues for its current fiscal first quarter will be only 8 percent higher than the the fiscal first quarter of last year. Cisco also said fiscal second quarter revenue will be only slightly higher--8.5 percent more than the previous year.

Chambers held off any further outlook because of the current economic conditions, which he had already cited as a factor in slower growth earlier this year. Cisco is one of the most significant bellwethers of high-tech spending, and increasingly of service provider sector spending. It is not entirely clear how responsible slower carrier spending is for Cisco's slower growth, but it is certainly a factor. Still, many companies would not mind 8 percent growth per quarter.

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