Cisco shares plunge on gloomy outlook

Cisco Systems CEO John Chambers' troubling assessment of the health of US technology spending late last year triggered a stock sell-off that chopped Cisco's market value by one-third, an Associated Press report said.

The Associated Press report said the plunge continued on signs in Cisco's second-quarter financial report that economic uncertainty will continue to hurt sales growth at the world's largest internet networking supplier.

Cisco shares fell nearly 4% to $22.17 at the open of trading.

Cisco released quarterly results after the market closed that matched Wall Street's subdued expectations but gave disappointing guidance, the Associated Press report added.

The San Jose-based company's forecast of 10% sales growth in the third fiscal quarter fell below the 15% projection of Wall Street analysts, the report said.

The forecast spooked investors, who viewed it as a sign technology spending will continue to weaken as companies gird for a possible recession in the US, the report added.