Cisco Suffers Worst Rout in Almost Four Years on Margin Woes

Cisco Systems Inc. suffered its worst stock decline in nearly four years after giving a weaker-than-expected forecast for profitability, a sign that higher memory-chip prices are taking a toll.

Adjusted gross margin, which measures the percentage of sales left over after deducting production costs, will be roughly 66% in the quarter that runs through April, the company said in a statement Wednesday. Analysts had estimated 68.2% on average.