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Cisco 2Q profit matches Wall Street forecast, but sales slowdown spooks investors

SAN JOSE, Calif. (AP) Cisco Systems Inc.'s second-quarter profit matched Wall Street's subdued expectations, but shares of the world's largest Internet networking supplier plunged on signs of a sales growth slowdown.

The San Jose-based company's guidance of 10 percent sales growth in the third fiscal quarter fell below the 15 percent projection by Wall Street analysts.

The forecast disappointed investors, who viewed it as a sign technology spending will continue to weaken as companies gird for a possible recession in the U.S.

Cisco executives acknowledged many companies are being cautious about investing in new Internet equipment, but they predicted growth will soon pick up again, helped by surging demand in emerging markets.

Cisco shares sank on the gloomy outlook, falling $1.77, or nearly 8 percent, to $21.31 in after-hours trading. It had slipped 18 cents to close at $23.08 during the regular trading session, before the results were released.

Investors have punished Cisco's stock severely during the past four months on fears the San Jose-based company isn't as well insulated from U.S. economic pressures as previously thought.

The company's market value has been chopped by one-third, falling from more than $200 billion in November to around $140 billion today. The stock plunge was triggered by a troubling assessment of U.S. tech spending offered by Cisco CEO John Chambers after the company's last earnings report.

Cisco said Wednesday that its net income was $2.06 billion, or 33 cents per share, during the three months ended Jan. 26. That's e all the operating rooms so he worked out a deal with the clinic.

He points out that close to 1,600 patients are on a waiting list for surgery some of them with cancer.

Couillard, who is also a neurosurgeon, said the costs for using the private clinic would be about the same ''or even a little cheaper.''

He added that what should be sacred is the principle of ''whether you are rich or poor, you should have the same access to care.''

Khadir suggested Quebec follow Ontario's example which he said has ''centralized'' appointments and ''prioritized'' surgeries.

''If you centralize the appointments on a regional or national level, you speed up the system,'' he said.

''If the political will is there, you can reduce the waiting lists.''

Khadir said he wonders why the province has not implemented the Ontario innovation.

The agreement between the Montreal clinic and the hospital to make an operating room available twice a week will be re-evaluated in six months.

The health minister also said the province will allow other private clinics to follow suit.
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