Cisco, a cornerstone company for the Information Technology sector, has reported a disappointing sales forecast and fallen earnings. The overall disappointing outlook has further lowered the company stock value. As a result of the not-so-good sales forecast, the Dow Jones industrial average  fell almost 100 points (15 per cent) with the Nasdaq composite index down by 1.3 per cent.

This fall, the tech industry has urged several world leaders to come up with their own solutions to revive the global economy. The company forecasts reduced sales for its November-January quarter, and the worst part is that its share has been cut down by even the smallest of competitors.

During late morning trading, market indices fell crumbled like this:

• Dow Jones: Fell 97.21 points; 0.9 per cent
• Nasdaq: Fell 33.93 points; 1.3 per cent
• Standard & Poor’s 500: Fell 9.35 points; 0.8 per cent

“We are going to power through what we believe to be some short-term challenges in the next several quarters,” John Chambers, Cisco’s CEO said. “We also believe that the intermediate and long-term growth opportunities far outweigh the short-term challenges. With that in mind we plan to continue to invest in new markets and technology. It is realistic to return to a 12 to 17 percent growth goal in the not too distant future, assuming a return to a good economic growth.”

Chambers also reported that the company expects its revenue to grow by merely 2 to 3 per cent for this quarter and they are really cocerned!