Diet needed

11 November 2010 By Robert Cyran Follow @rob_cyran

The networking giant shocked Wall Street with its tepid revenue forecast sending shares plunging in late trading. This looks like an abrupt overreaction. But fears that Cisco has become too sprawling for its own good are well founded.

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Cisco reported revenue of $10.8 billion in the quarter ending Oct. 30. That's a rise of 19 percent compared to the same period last year for the networking company. Earnings per share rose 13 percent to 34 cents.

The company estimates revenue will rise 3 to 5 percent in the current quarter. Analysts had predicted 13 percent growth. For the fiscal year, Cisco expects revenues to rise 9 to 12 percent. The company had said it expects 12 to 17 percent growth over the longer term. Shares fell more than 12 percent in afterhours trading.

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