Cisco CEO John Chambers says customers are more cautious

Cisco warns of slowing growth

Share value slips eight per cent despite solid quarter

Written by Martin Courtney

Computing, 07 Feb 2008

Cisco posted revenue of $9.8bn (£5bn) in its second quarter, a healthy 16.5 per cent rise, with net profit also going up by 7.3 per cent to $2.1bn (£1.1bn).

Revenue for the first six months of financial 2008 was $19.4bn (£9.9bn), compared with $16.6bn (£8.5bn) for the same period last year. Net income was $4.3bn (£2.2bn), compared with $3.5bn (£1.8bn) for the first half of fiscal 2007.

Despite the positive results, Cisco chief executive John Chambers warned of slowing growth in the year ahead, citing global stock market conditions and a January slowdown in orders for networking and telecommunications equipment. The coming quarter was given a comparatively modest 10 per cent growth forecast.

"We are seeing our US and European customers become increasingly cautious," said Chambers in a statement.

Share value slipped by eight per cent on publication of the figures.