Cisco announces gloomy sales outlook

Computer networking company Cisco Systems has surprised the market by the sales forecast that fell below analysts’ estimates.

Revenues for the second fiscal quarter will be between $ 10.1bn (£ 6.2bn) and $ 10.3bn, the company said in a conference call. This is short of analyst forecasts of $ 11.1bn.

According to Reuters, John Chambers, Cisco CEO, warned of “short-term challenges” in Europe and public sector spending and the weakness of the service providers.

However, the company reported strong results for its first quarter to October, an 8% increase in profits to $ 1.9bn and 19% growth in revenue of $ 10.75bn.