Cisco slips in earnings blip

Eight per cent shaved off shares...

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.