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Wednesday, 7 February, 2001, 17:00 GMT
Cisco shares slide 13%
Cisco
Cisco has proven a master at growing its business at a fast rate
The computer networks company Cisco Systems has reported a 48% rise in profits during November, December and January.

However, the seemingly impressive result fell short of forecasts made by Wall Street analysts - the first time in six years that Cisco has missed its target.

The company's shares slid $4.69, or about 13%, to $31.06 in heavy morning trade on the Nasdaq market on Wednesday as investors showed their disappointment.

It was the lowest level the shares have reached since August 1999.

Profits during November-January had risen to $1.33bn from $897m a year earlier, a rise from 12 to 18 cents a share.

And sales rose 55% to $6.75bn from $4.36 a year earlier.

"We remain confident about the market opportunity ahead of us over the next three to five years," chief executive John Chambers said.

"This confidence is based on the continued impact of the Internet on productivity, and just how much more work needs to be done before every company is an e-company and a majority of the world's countries are e-countries," he said

Disappointed analysts

But although the rise may seem impressive, analysts had expected more.

They had predicted profits would rise to 19 cents per share and sales to rise to between $7bn and $7.2bn.

Despite such predictions, many brokers had worried that Cisco's sales might actually fall during the last quarter of 2000.

The Nasdaq-listed stock had on closed up almost $1.25 or 3.44% at $35.75 a share in heavy trading on Tuesday ahead of the release of results.

In the past year, the company - which supplies about 70% of all routers that direct traffic on the internet - has underperformed the Nasdaq 100 Index by almost 6%.

Cisco has proved to be a master at growing its business at a fast rate, achieving average annual revenue growth of 30-50% in the past few years.

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06 Nov 00 | Business
Cisco hits the spot
23 Jan 01 | Business
Bridging the digital divide
28 Jan 01 | Business
Tech firm worries at Davos
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