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.