Cisco Systems has more than halved its revenue forecast amid slowing economic growth and increased competition. Cisco said annual revenues would increase by between 5-7 per cent over the next three years, down from a previous target of 12-17 per cent.  But it maintained profits would rise by 7-9 per cent during the same period.

Cisco stocks rose 1.6 per cent on on Wall Street following the announcement which had been expected as the forecasts had been described as ‘off the chart’.

In April, Cisco’s Chief Executive John Chambers said that “bold steps” were needed to overhaul the company, which is the world’s largest maker of computer networking gear.

The company decided to focus on its core business and has since shed almost 13,000 jobs, sold a manufacturing plant in Mexico and shut down its consumer camcorder unit Flip Video.

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