Cisco Sales Miss Casts Shadow Over CEO’s Turnaround Plan
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Cisco Systems Inc.’s shares fell 11 percent after the company forecast its first quarterly sales decline in four years, adding to evidence that Chief Executive Officer John Chambers’s turnaround plan is sputtering.
The stock of the world’s largest maker of computer-networking equipment dropped to $21.37 at the close in New York, the biggest percentage decline since February 2011. Cisco yesterday said revenue in the current quarter, which ends in January, will decline 8 percent to 10 percent from a year earlier, while analysts were predicting on average 4 percent growth, according to data compiled by Bloomberg.