As weak demand and price pressure forced Cisco’s Chief Executive to cut jobs and exit businesses, he has abandoned a four-year-old forecast for annual sales growth of 12 percent to 17 percent. Concerned market analysts said that the sales growth of the company has not yet been hinted by the company.
 
Following the announcement, Cisco’s share fell sharply after witnessing jump in the morning. Cisco shares fell as low as $17.12 in extended trading after closing at $17.78 on the Nasdaq Stock Market. The company told that in the fiscal fourth quarter, which ends in July, profit excluding some costs will be 37 cents to 39 cents a share, and sales will be $10.8 billion to $11.1 billion.
 
The investors are viewing Cisco as a bellwether for the technology industry as it is dominating the market for routers and switches, which direct Internet traffic. It has come to light that companies buy its switches for corporate networks, while phone and Web-service providers typically purchase Cisco’s more-expensive routers. Although Cisco switches are in demand, its business has declined 9% year-over-year as a result of pricing pressures.
 
Meanwhile, Cisco has told that it is expecting to adjust earnings between 37% and 39% per share for the fourth quarter which will be below the analyst’s expectations of 42 cents per share. As a result of it the revenue growth will be flat to up to 2%.