Cisco Systems shares fall after weak forecast

CiscoThe shares of Cisco Systems recorded a fall of 11 percent after the company said that ti expects a decline in its revenue for the first time in four years.

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.