Summary Box: Cisco’s forecast raises red flag

POSSIBLE TROUBLE AHEAD: Cisco Systems raised fears of a slowdown in technology spending with a sobering forecast that it traced to skittish customers concerned about the fragile state of economy, particularly in Europe. That red flag overshadowed a solid performance in Cisco System Inc.‘s most recent quarter.

THE PREDICTION: Cisco expects its revenue for the quarter spanning from May through July to rise 2 percent to 5 percent from last year. Analysts had projected a 7 percent gain. The company’s earnings forecast also fell below analysts’ target.

INVESTOR REACTION: Cisco shares plunged more than 8 percent in Wednesday’s extended trading.

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