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Economics

Cisco Shortfall Shows Wider Risks in Government Cuts

Disappointing sales and profit forecasts from Cisco Systems Inc. show cutbacks in government spending that pose risks for companies that rely on the sector for growth.

Governments in Europe, Japan and some U.S. states reduced orders as their budgets came under pressure, said John Chambers, chief executive officer of the world’s largest computer networking-equipment maker. State government orders fell 48 percent in the last quarter from the previous period, he said.