Technology bellwether Cisco Systems Inc. said incoming orders declined dramatically in January, indicating that the shrinking economy has more pain in store for the industry.
Chief Executive John Chambers said the company, the world's largest maker of computer networking gear, saw progressively fewer orders as its latest quarter progressed. In November, orders were down 9% from the year before. In January, the drop was 20%.
Chambers projected a 15% to 20% drop in revenue in the current quarter. That would put revenue at $7.8 billion to $8.3 billion, below the average estimate of $8.7 billion projected by analysts polled by Thomson Reuters.
Shares of the San Jose company fell 48 cents, or 3%, in extended trading after Chambers' comments. They had risen 22 cents to $15.84 in regular trading.
Profit fell 27% in the fiscal second quarter ended Jan. 24, but the company still beat Wall Street's lowered expectations.
Net income was $1.5 billion, or 26 cents a share. That was down from $2.1 billion, or 33 cents, a year earlier. Excluding items, earnings were 32 cents a share.
Sales were $9.1 billion, down 7.5% from a year earlier.
Analysts had expected earnings of 30 cents a share on $9 billion in revenue.