Cisco slips in earnings blip

Eight per cent shaved off shares...

Shares in networking giant Cisco fell eight per cent on the Nasdaq over night after a brokerage slashed the company's earnings forecast. Wachovia Securities said revenues for the quarter set to conclude at the end of April would fall to $4.575bn from $44.8bn on the previous quarter. It also said investors in Cisco had been over-optimistic in their predictions of a recovery in IT spend. The news hit investors who were expecting Cisco revenues to pick up by the end of April and are desperate for signs of a turnaround in the sector. As of close, Cisco shares were down eight per cent to $14.24, compared with a year-high of $27.31.