US computer networking giant Cisco last night reported a solid quarterly performance, but warned that the global economic downturn would take its toll in the current quarter. It added that lay-offs could not be ruled out.
Cisco reported a net profit of $1.5 billion for the October-December quarter of its financial year, down 27% compared with a year earlier but better than Wall Street analysts' expectations. Revenue fell 7.5% to $9.1 billion.
The period included a four-day shutdown of nearly all of Cisco's operations in the US and Canada over the New Year holiday to cut costs.
In a conference call with analysts and reporters, chief executive John Chambers said he expected revenue to fall by a bigger than expected 15% to 20% this quarter.
He said the company hoped to avoid lay-offs but a dramatic deterioration of the economic situation could lead to job cuts of at least 10% of the company's workforce of around 67,000.
