Cisco Systems has said that it expects its revenues to be 8 to 10 percent lower during the second quarter of the year.

The company said that its revenues would be lower mainly due to lower demand in key markets including China.  The company indicated that it recorded a significant fall in the number of orders during the quarter in important emerging market countries and this has affected the company's ability to generate revenues in those markets.

John T.  Chambers, the chief executive Officer of Cisco Systems issued the profit warning as the company recorded lower-than-expected revenue for its first quarter of the financial year.  He said that the fall is due to sluggish demand in emerging markets as well as the effect of government shutdown on the business sentiments.

He said that the business partners in China are looking to avoid equipment from the company following the reports that suggested that the US spied on foreign governments.  He added that the companies are slowing down their buying decisions due to the continuing economic uncertainties.  He added that there will be a fall in revenue from television set-top box sales as it moves away from low profit contracts in the industry.