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SAN JOSE, Calif. (AP) -- Cisco Systems Inc.'s second-quarter profit matched Wall Street's subdued expectations, but shares of the world's largest Internet networking supplier plunged on signs that economic jitters will continue to hurt sales growth. The San Jose-based company's guidance of 10 percent sales growth in the third fiscal quarter fell below the 15 percent projection by Wall Street analysts.
The forecast disappointed investors, who viewed it as a sign technology spending will continue to weaken as companies gird for a possible recession in the U.S.
Cisco executives acknowledged many companies are being cautious about investing in new Internet equipment, but they predicted growth will soon pick up again, helped by surging demand in emerging markets.
"It's important to keep in perspective that even in these economic times, we're seeing solid growth on a year-over-year basis," said Dennis Powell, Cisco's chief financial officer.
Powell said Cisco experienced sudden slowdowns in January in several markets in the U.S. and in European Internet service providers. Uncertainty about how long the slump will continue prompted the |
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