Cisco CEO Calls Business Slow
Cisco (CSCO) CEO John Chambers said business in January has been "a little bit slow" for the networking giant, according to Bloomberg.
"The business momentum of most of my customers was very tough in December, and equally tough in January," Chambers said at the World Economic Forum in Davos, Switzerland.
Chambers also was quoted as saying Cisco may put off some expansion plans as it waits for the slowdown to run its course. He called the slowdown a "two-quarter phenomenon."
Earlier this month Chambers, in a dramatic turnabout, said his business' visibility was suddenly murkier, and he urged investors at a Morgan Stanley Dean Witter conference Wednesday to prepare for a less predictable revenue growth rate within the 30% to 50% range in the near term.In Switzerland, Chambers said, "I have said that in economies that are growing reasonably well, [Cisco] will grow 30% to 50% percent. In economies that slow, we will go below 30% to 50%. And we may go negative if it's a slowdown that's very rough, that lasts a long period of time." Bloomberg also reported that Chambers later said analysts expect the company to meet its target this fiscal year (which ends in July), but he wouldn't comment on what he believes will happen. Analysts expect Cisco to earn 78 cents a share this fiscal year on revenue of $29.54 billion.
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