Cisco Feels Credit Crunch

Updated from 7:31 a.m. EST

Cisco (CSCO Quote) shares dropped 6% early Thursday, a day after the networker warned investors that it's feeling the effects of the credit crunch hitting Wall Street.

The San Jose, Calif., company posted an adjusted profit of 37 cents a share for the fiscal first quarter, beating the Thomson Financial analyst consensus estimate by a penny. Revenue rose 17% from a year ago, in line with the Thomson target. Cisco also offered guidance that's in line with Wall Street estimates.

But shares slid as investors continue to worry about the damage being done by bad debt in the financial sector. Morgan Stanley (MS Quote), Washington Mutual (WM Quote) and AIG (AIG Quote) were among the biggest losers on Wall Street Wednesday as credit fears intensified. AIG and Morgan Stanley later Wednesday became the latest big financial firms to take multibillion-dollar hits on subprime mortgage-related securities gone sour. ...