Cisco misses estimates

CISCO Systems quarterly revenue fell slightly short of Wall Street’s expectations, disappointing investors who thought an improving economy and growing internet traffic would have spurred even stronger sales of routers and switches.

Cisco, the world’s biggest network equipment maker, said yesterday that revenue in the quarter ended 31 July rose 27 per cent from a year earlier to $10.8bn (£6.9bn). That was slightly below market forecasts of $10.9bn.

Its net profit rose to $1.9bn from $1.1bn a year earlier.

Cisco shares are down around six per cent so far this year, due to worries that slower growth in Europe and China could hurt a nascent recovery in global technology spending. Cisco is considered one of the technology sector’s prime bellwethers.