CiscoShares of networking equipment maker Cisco Systems (CSCO) plunged Thursday after the company's forecast for fiscal second-quarter earnings came in lower than expected.

The company said it expects second-quarter sales to fall between $10.1 billion to $10.3 billion. Analysts surveyed by Bloomberg News projected sales of $11.1 billion

For the quarter ended Oct. 30, Cisco reported earnings of 34 cents per share, up from 30 cents per share a year earlier. Revenue rose 19% to $10.8 billion.

During an analyst conference call Wednesday, CEO John Chambers noted that the company saw "several challenges in the quarter" including "certain categories of our public sector segment, certain product in our service provider segment, and to a limited extent, Europe, in terms of business momentum."

The news sent Cisco shares down more than 16% Thursday.

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kv37

Tech stocks drive me crazy, up and down they go.

November 11 2010 at 4:43 PM Report abuse rate up rate down Reply
Jim Monson

Why does the Board of Directors ever let John Chanbers open his mouth in public. Every time he does, the stock takes a dive. John, shut up, get out of the way, and stop giving forward looking statements.

November 11 2010 at 3:58 PM Report abuse +1 rate up rate down Reply
daviida

I could be wrong but I thought his forecast for last quater was negative now again thisquater. Put someone in that position that has an upbeat positive position. One that will send that Company in a positive direction. Glad I don't own there stock. Itbad enough ours drug down by his comments.

November 11 2010 at 9:52 AM Report abuse rate up rate down Reply