SAN JOSE, Calif. (AP) -- Cisco Systems Inc. lowered analyst expectations for its current quarter ending in July, largely because the world's largest maker of computer-networking equipment is having trouble closing major sales with corporate customers who are becoming more concerned about the state of the economy, particularly in Europe.
That raised fears that the technology companies catering to businesses and government agencies — a niche known as the "enterprise" market — are heading toward a slump.
Cisco Systems Inc. CEO John Chambers says he is hoping things will pick up in the second half of the year. But when pressed by an analyst during a Wednesday conference call, Chambers conceded Cisco is operating in a "wait-and-see type of environment."
QUESTION: What's the risk that we're just going to have another downturn like we had two to three years ago?
ANSWER: We do worry when you see a trend occurring that it could be an indication of a bigger issue, I think right now I'd classify it as uncertainty and looking to see more certainty on the global economy and in Europe and secondly, more certainty in terms of government policies that can have major impacts on their business. So it's a nice way of saying that we're not sure. We sure don't like the trend in the enterprise IT (information technology) spending, although we think in our product areas we control our own destiny in terms of share and market.