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.

For more:
- check out this coverage at Light Reading

Suggested Articles

Highlighted by growth in its number of broadband subscribers, Comcast's net profit in the fourth quarter increased by 26%.

Amazon has filed a motion that seeks to pause Microsoft's work on the Pentagon's $10 billion cloud contract until a court rules on its protest.

Vodafone Group and Sunrise announced a partnership that allows Sunrise's enterprise customers to tap into Vodafone's business services.