Ahead of the Bell: Cisco down after low forecast

The stock was down 94 cents, or 5.4 percent, at $16.45.

Cisco reported results for its latest quarter, which ended Oct. 25, late Wednesday. While they met expectations, Chief Executive John Chambers said orders deteriorated as the quarter went on, ending with a 9 percent decline year-over-year in October.

Accordingly, he projected a 5 percent to 10 percent sales drop for the current quarter, which ends in January.

Because Cisco's previous fiscal quarter ended a month later than most companies, it was the first major technology company to include results for October. While investors had been counting on some deterioration in October as the credit crisis worsened, Cisco's results are likely to be seen as indication of fortunes at other companies.

"Cisco is the primary bellwether for the data-networking-equipment sector," wrote Oppenheimer & Co. analyst Ittai Kidron.

Shares of Cisco competitor Juniper Networks Inc. were down 76 cents, or 4.4 percent, to $16.45 in pre-market trading.

Analysts mainly kept their ratings on Cisco after the results, but trimmed price targets and forecasts.

"We believe Cisco's margins will be more resilient relative to most peers and the 2001 downturn due to its better inventory management and slower headcount additions," wrote Goldman Sachs analyst Simon Jankowski.