Tech bellwether

Cisco Systems

(CSCO) - Get Report

dropped 3.8% in late morning after CEO John Chambers reiterated his view that a sharp slowdown in capital spending will extend into the second half.

"Unlike what occurs during normal business transitions, our visibility is not good for the second half of this year,"

Reuters

quoted him as saying. Chambers added that it is "better than 50-50" that the slowdown will last late into the year.

Also,

CNBC

reported that Cisco is retracting a statement denying that Chambers had mentioned a possible stock repurchase.

Chambers had mentioned a repurchase program at a conference appearance and the company is apologizing for denying it.