Cisco Shares Drop Drastically

According to Market Watch, Cisco Systems Inc. said Wednesday that earnings for the second fiscal quarter fell 27% as sales declined and expenses increased, though the final result was slightly better than Wall Street expected.
However, the network equipment giant saw its shares drop more than 3% in after-hours trading after it issued a disappointing sales forecast for the current period.

CSCO, , ) results highlighted what many analysts already feared was a dramatically weakening tech market that is starting to hurt even the giants of the industry.
"Yuck, it's bad out there," said analyst Samuel Wilson of JMP Securities, noting that January was "ugly," which appears to be "in-line with the macroeconomic picture."

Cisco reported a fiscal second-quarter net income of $1.5 billion, or 26 cents a share, compared with $2.1 billion, or 33 cents a share, for the year-earlier period.
Revenue was $9.1 billion, down from $9.8 billion for the same quarter last year. Adjusted income was 32 cents a share. Analysts had expected the company to report earnings of 30 cents a share on revenue of $9 billion, according to a consensus survey by Thomson Reuters.