Cisco Systems

(CSCO) - Get Report

was up 1.7% in preopen

Island

trading. CEO John Chambers told Britain's

Financial Times

that he sees the U.S. economic downturn continuing for at least three more quarters and there are signs it is spreading.

Chambers, head of the top network-equipment maker, said the outlook had deteriorated significantly since Cisco said in January that it expected the slump to stretch over two quarters or more.

ABN Amro

and

UBS PaineWebber

cut their 2001 and 2002 earnings estimates.