Cisco sees profits almost halve

Cisco's results were still better than market expectations

Computer firm Cisco Systems has seen its quarterly profits fall by 46%, as its sales have declined in the face of the global economic slump.

For the three months to 25 July, Cisco made a net profit of $1.1bn (£647m), compared with $2bn for the same period a year earlier.

Despite the big fall, analysts had expected an even steeper decline.

And the firm said the quarter may have seen the bottom of the recession-related downturn.

"We saw a number of positive signs this quarter in the economy and in our business," said chief executive John Chambers.

Cisco's quarterly sales were down 18% to $8.5bn.

The company is the world's largest manufacturer of computer networking equipment.

Cisco said its cost-cutting program - that has seen about 2,000 workers sacked - was over.