NEW YORK (
) -- Shares of
continued their slide Thursday after the company announced its
. The network equipment-maker
across the tech sector.
Cisco plunged 16.2% Thursday to close at $20.52 after a weaker-than-expected outlook took the Street by surprise. Cisco projected second-quarter revenue growth of 3% to 5%, while analysts had estimated a 13% year-over-year increase.
Cisco's slide impacted
, whose shares fell 4.4% to close at $33.07 Thursday. JMP Securities downgraded the company to market perform from market outperform, citing "valuation concerns that have been exacerbated by the negative outlook provided by its largest customer Cisco."
The semiconductor company has about 20% revenue explosure to Cisco, JMP noted.
competitor, dropped 3.8% to close at $3.02 Thursday on worries that it may start to see a slide in orders from government customers. Cisco reported down sales in government orders on its
Wednesday, as well.
Cisco parts suppliers and chipmakers, including
also saw their shares slide. Broadcom dipped 2.4% to $41.35, while Marvell was down 1.2% to close at $20.02.
--Written by Olivia Oran in New York.
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