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Cisco (CSCO) was down 8.7% in preopen Island trading.

After the close Monday it warned that third-quarter revenue would drop 30% from second-quarter levels, putting it short of $5 billion. The company had earlier forecast flat revenue for the period.

Cisco also said earnings will be in the "very low single digit" range. Analysts expect 8 cents a share on revenue of $5.95 billion.

In addition, the networking giant said it will take an excess inventory charge of $2.5 billion during its third quarter and said it would cut 500 more jobs than it previously announced.