|Cisco CEO John Chambers|
CEO John Chambers called the rash of order cancellations "air pockets." Investors called it a time to grab the parachutes. Cisco shares are down 17% in premarket trading Thursday in the wake of the company's grim outlook. Cisco's lowered sales target presumes that the weak demand will be short term and regain some health later in the year. That is the troubling part, since the trends that are now impacting Cisco's top line - cuts in government spending and an alarming lack of demand for cable set-top boxes -- are not likely to improve very soon. And the notion that this is a problem specific to Cisco doesn't seem to be holding much water. Shares of gear peers Alcatel-Lucent (ALU - Get Report) and Juniper (JNPR - Get Report) dropped 5% and 7% in premarket trading Thursday. --Written by Scott Moritz in New York. >To contact this writer, click here: Scott Moritz, or email: email@example.com. To follow Scott on Twitter, go to http://twitter.com/MoritzDispatch. >To send a tip, email: firstname.lastname@example.org.