BizAims

Computer network equipment maker Cisco Systems' profit has jumped 37%, but its shares fell sharply amid fears that US firms are cutting network spending.

For the three months to 27 October, Cisco's net income was $2.2bn (£1bn), compared with $1.6bn a year ago.

Revenue rose 16.7% to $9.6bn, in line with forecasts, but chief executive John Chambers said orders fell from banks and carmakers.

Cisco shares fell 4% on the Nasdaq and then almost 10% in after-hours trading.

Nervousness

Besides, some investors were disappointed Cisco results did not exceed Wall Street forecasts.

Cisco recorded robust growth outside the United States. Sales in developing countries went up 35%, offsetting the slower performance in the US market.