NEW YORK (Reuters) – Cisco Systems Inc(CSCO.O: Quote, Profile, Research) CEO John Chambers’ comments on the economy sent jitters through financial markets on Thursday, stoking fears that a recovery in technology spending could be waning.

Chambers’ warning of “unusual uncertainty” and Cisco’s weaker-than-expected revenue forecast on Wednesday forced investors to reconsider their views of technology stocks following stellar results from Intel Corp(INTC.O: Quote, Profile, Research) last month.

Cisco shares plunged 9.8 percent to $21.40 in their biggest single-day drop since October 2008. The news hit other tech shares like rival network equipment maker Juniper Networks Inc, which fell 6.4 percent, supplier Flextronics International Ltd, which fell 4.2 percent, and bellwethers like Microsoft Corp and IBM.

The Nasdaq composite was down 0.7 percent.

Chambers, 60, is one of the most influential chief executives in Silicon Valley and investors have learned to listen to his comments on the economy. He was one of the first technology CEOs in 2007 to flag the impact of troubles in the U.S. financial sector, warning of a dramatic decline in orders even as others said they were not affected.

“He’s not to be ignored. His view is so broad, so global, and he tells it like it is, and I think he’s telling us there’s trouble ahead, unfortunately,” said Ticonderoga Securities analyst Brian White. “After the tech downturn, he has provided the market with very realistic views of what’s happening in the economy and in his business.”

A wide range of governments and companies buy Cisco’s routers, switches and other network equipment, giving Chambers a close-up view of trends in federal and private investment.

NEW YORK, Aug 12 (Reuters) – Cisco Systems Inc (CSCO.O: Quote, Profile, Research, Stock Buzz) CEO John Chambers’ comments on the economy sent jitters through financial markets on Thursday, stoking fears that a recovery in technology spending could be waning.

Chambers’ warning of “unusual uncertainty” and Cisco’s weaker-than-expected revenue forecast on Wednesday forced investors to reconsider their views of technology stocks following stellar results from Intel Corp (INTC.O: Quote, Profile, Research, Stock Buzz) last month.

Cisco shares plunged 9.8 percent to $21.40 in their biggest single-day drop since October 2008. The news hit other tech shares like rival network equipment maker Juniper Networks Inc (JNPR.N: Quote, Profile, Research, Stock Buzz), which fell 6.4 percent, supplier Flextronics International Ltd (FLEX.O: Quote, Profile, Research, Stock Buzz), which fell 4.2 percent, and bellwethers like Microsoft Corp (MSFT.O: Quote, Profile, Research, Stock Buzz) and IBM (IBM.N: Quote, Profile, Research, Stock Buzz).

The Nasdaq composite .IXIC was down 0.7 percent.

Chambers, 60, is one of the most influential chief executives in Silicon Valley and investors have learned to listen to his comments on the economy. He was one of the first technology CEOs in 2007 to flag the impact of troubles in the U.S. financial sector, warning of a dramatic decline in orders even as others said they were not affected. [ID:nN11262298]

“He’s not to be ignored. His view is so broad, so global, and he tells it like it is, and I think he’s telling us there’s trouble ahead, unfortunately,” said Ticonderoga Securities analyst Brian White. “After the tech downturn, he has provided the market with very realistic views of what’s happening in the economy and in his business.”

A wide range of governments and companies buy Cisco’s routers, switches and other network equipment, giving Chambers a close-up view of trends in federal and private investment.

NEW YORK (Reuters) – Cisco Systems Inc (CSCO.O: Quote, Profile, Research, Stock Buzz) CEO John Chambers warned of “unusual uncertainty” in the economy and forecast revenue that missed Wall Street targets, sending its shares plummeting and raising fears that a nascent recovery in technology spending could be derailed.

The cautious comments from the man often known as Silicon Valley’s biggest cheerleader disappointed investors who had expected growing Internet traffic would spur stronger sales of Cisco’s network equipment and send a positive signal to the broader technology sector.

“We are seeing a large number of mixed signals in both the market and from our customers’ expectations, and we think the words ‘unusual uncertainty’ are an accurate description of what is occurring,” Chambers told analysts on Wednesday.

Shares in the networking giant and industry bellwether dived 8 percent after-hours, weighing on other tech names. Rival Juniper Networks (JNPR.N: Quote, Profile, Research, Stock Buzz) slid 3 percent in extended trading, while International Business Machines Corp (IBM.N: Quote, Profile, Research, Stock Buzz) was down over 1 percent. EMC Corp (EMC.N: Quote, Profile, Research, Stock Buzz) fell over 2 percent.

Cisco is expected to depress Wall Street on Thursday, with Standard & Poor’s 500 futures down 0.4 percent and Nasdaq futures off 1.2 percent. ID:.N

Chambers said orders slowed in late June to early July as worries mounted about debt problems in Europe, but strengthened at the very end of the quarter that ended July 31. He added that he did not expect a double-dip recession.

“He certainly sent investors mixed signals. But overall, it looks like orders ramped up toward the end of the quarter but weren’t strong enough to give the guidance that people were looking for,” said Bill Choi, analyst at Jefferies & Co.

NEW YORK, Aug 11 (Reuters) – Cisco Systems Inc’s (CSCO.O: Quote, Profile, Research, Stock Buzz) quarterly revenue and outlook missed Wall Street expectations and Chief Executive John Chambers cited “unusual uncertainty” in the economy, sending its shares plunging 8 percent.

The results from the world’s biggest network equipment maker disappointed investors who had thought that growing Internet traffic would have spurred stronger sales of routers and switches, even amid concerns about the economic recovery.

“We are seeing a large number of mixed signals in both the market and from our customers’ expectations, and we think the words ‘unusual uncertainty’ are an accurate description of what is occurring,” Chambers said on a conference call.

“The Federal Reserve’s comments yesterday that the pace and output of the recovery has slowed in recent months, and that the recovery is likely to be more modest in the near term than had been anticipated just a few months ago, are comments that most of our large customers that I have talked with recently would agree with.”

Cisco forecast its current-quarter revenue would grow 18 percent to 20 percent from a year earlier, while the average analyst estimate had been for 21 percent growth to $10.95 billion.

Revenue in the quarter ended July 31 rose 27 percent from a year earlier to $10.8 billion, Cisco said on Wednesday. That was also below the average analyst forecast of $10.9 billion, according to Thomson Reuters I/B/E/S. (For a graphic on Cisco earnings, click link.reuters.com/gun54n)

Cisco is one of the technology sector’s prime bellwethers due to its broad, global operations. Since Cisco’s latest results are for the full month of July, instead of June for many of its peers, they are also seen as an early indicator of industry trends.

NEW YORK (Reuters) – Hewlett-Packard Co’s share price (HPQ.N: Quote, Profile, Research, Stock Buzz) fell in early trading on Monday, three days after CEO Mark Hurd resigned following an investigation into his relationship with a contractor.

HP shares, which had doubled since Hurd took the helm five years ago and implemented drastic cost cuts, were trading at around $42.58 on Monday morning, down 8 percent from their NYSE close of $46.30 on Friday.

They had fallen 10 percent in extended trade on Friday, after HP said an investigation found that Hurd had falsified expense reports to conceal a relationship with a female contractor who was identified as sometime-actress Jodie Fisher on Sunday.

Some analysts said the shares looked cheap after the sell-off, but investors weren’t entirely convinced given uncertainty over whether Hurd’s successor could lead HP against competitors like IBM (IBM.N: Quote, Profile, Research, Stock Buzz), Apple Inc (AAPL.O: Quote, Profile, Research, Stock Buzz) and Cisco Systems Inc (CSCO.O: Quote, Profile, Research, Stock Buzz).

“Many senior executives fail. So you don’t know whether someone is going to be good in the seat until they’re in the seat for six to 12, sometimes 24 months… So that’s the risk,” said Louis Miscioscia, an analyst at Collins Stewart.

HP wants to find a new CEO as soon as possible, and is looking for candidates inside and outside the company. Chief Financial Officer Cathie Lesjak will run the company in the interim, and will not run for CEO, HP said.

HP shares were attractively valued before Friday’s shocking news, and looked more so after the decline, Miscioscia said.

NEW YORK, Aug 9 (Reuters) – Hewlett-Packard Co’s share price (HPQ.N: Quote, Profile, Research, Stock Buzz) fell in early trading on Monday, three days after CEO Mark Hurd resigned following an investigation into his relationship with a contractor.

HP shares, which had doubled since Hurd took the helm five years ago and implemented drastic cost cuts, were trading at around $42.58 on Monday morning, down 8 percent from their NYSE close of $46.30 on Friday.

They had fallen 10 percent in extended trade on Friday, after HP said an investigation found that Hurd had falsified expense reports to conceal a relationship with a female contractor who was identified as sometime-actress Jodie Fisher on Sunday. [ID:nN08209962]

Some analysts said the shares looked cheap after the sell-off, but investors weren’t entirely convinced given uncertainty over whether Hurd’s successor could lead HP against competitors like IBM (IBM.N: Quote, Profile, Research, Stock Buzz), Apple Inc (AAPL.O: Quote, Profile, Research, Stock Buzz) and Cisco Systems Inc (CSCO.O: Quote, Profile, Research, Stock Buzz).

“Many senior executives fail. So you don’t know whether someone is going to be good in the seat until they’re in the seat for six to 12, sometimes 24 months… So that’s the risk,” said Louis Miscioscia, an analyst at Collins Stewart.

HP wants to find a new CEO as soon as possible, and is looking for candidates inside and outside the company. Chief Financial Officer Cathie Lesjak will run the company in the interim, and will not run for CEO, HP said.

HP shares were attractively valued before Friday’s shocking news, and looked more so after the decline, Miscioscia said.

NEW YORK, Aug 5 (Reuters) – IBM (IBM.N: Quote, Profile, Research, Stock Buzz) and Aetna Inc (AET.N: Quote, Profile, Research, Stock Buzz) on Thursday jointly launched a service aimed at helping hospitals improve patient care by making better use of electronic medical records and other digital data.

International Business Machines Corp said the service, developed with Aetna subsidiary ActiveHealth Management, would help physicians access patients’ health data like previous medical records, claims, and lab data from multiple sources and quickly analyze what the best treatment might be.

The service, which will incorporate IBM’s analytical software, is also designed to flag overdue check-ups and alert doctors to which patients in their wards require the most immediate attention.

These services could help hospitals reduce medical mistakes and unnecessary tests and treatments, IBM said.

Robert Merkel, vice president and healthcare industry leader of IBM Global Business Services, said: “With the adoption of electronic medical records, there’s a huge increase in digital information that’s available on patients. We’re leveraging that information and providing deep analytical insight to support doctors and patient care, and providing the most advanced analytics.”

The service will also help physicians and hospitals measure their performance against national standards. Doctors who show higher quality, lower-cost care could win higher reimbursement rates from insurance companies.

IBM has over the past decade shifted its focus from hardware to software and services, and is investing heavily on developing more analytical and predictive technologies that can be used to, for example, prevent fraud or help ease traffic congestion.

NEW YORK (Reuters) – Akamai Technologies Inc’s (AKAM.O: Quote, Profile, Research, Stock Buzz) business outlook disappointed investors who expected greater profit from the growing popularity of online entertainment, sending the shares down 5 percent after-hours on Wednesday.

Higher costs also worried some analysts, although the company said the investment was crucial to support growing demand for online entertainment like high-definition movie downloads and real-time streaming of sports events.

Akamai, which helps media companies deliver online entertainment by navigating less-congested routes over the Web, said it expects earnings in the current quarter, excluding items, to be about 32 cents to 34 cents.

Analysts on average expected profit excluding items of 34 cents, according to Thomson Reuters I/B/E/S.

The company also raised its capital spending forecast for the full year to 17 percent of revenue from a previous range of 13 to 16 percent, after reporting higher costs in the second quarter.

Shares in Akamai fell to $41.85 after-hours, compared with their close on the Nasdaq at $44.03. They had risen more than 30 percent over the last three months on expectations that the popularity of online media, including high-definition video downloads, would boost its sales and profits.

Some analysts said the sell-off was overdone considering second-quarter results were solid, albeit in line with expectations.

NEW YORK (Reuters) – Fears that Tellabs Inc (TLAB.O: Quote, Profile, Research, Stock Buzz) may lose some business with top customer AT&T Inc (T.N: Quote, Profile, Research, Stock Buzz) to a rival sent the company’s shares down 7 percent on Tuesday, despite its stronger-than-expected results and outlook.

The communications equipment maker said it was benefiting from a push by phone companies to upgrade wireless networks that support smartphones and other new devices, but cited tough competition among vendors.

“I want to address this issue head-on … We do know AT&T is trialing a third vendor in its mobile networks. At the same time, Tellabs sees good demand from AT&T,” Chief Executive Rob Pullen told analysts on a conference call.

AT&T had chosen Tellabs and another vendor to help build its LTE high-speed wireless network, but it recently added one more rival to the mix, Pullen said. Some analysts have said AT&T may opt to buy more equipment from Cisco Systems Inc (CSCO.O: Quote, Profile, Research, Stock Buzz) rather than Tellabs in the future.

While an improving economy and increasing traffic from new gadgets like Apple Inc’s (AAPL.O: Quote, Profile, Research, Stock Buzz) iPhone are encouraging carriers like AT&T to spend more on their wireless networks, they are also seen driving a hard bargain with vendors.

“We would expect this to be competitive going forward,” said Pullen.

Tellabs shares fell 56 cents to $7.23 in morning Nasdaq trading. They had initially risen in early trade on the stronger-than-expected results and outlook.

NEW YORK (Reuters) – Juniper Networks Inc’s (JNPR.N: Quote, Profile, Research, Stock Buzz) quarterly revenue rose 24 percent as companies resumed spending on network equipment, but the shares fell on disappointment that its earnings outlook was merely in line with Wall Street’s forecast.

Juniper’s second-quarter results and revenue outlook for the current quarter exceeded the market’s estimates, but analysts said the modest profit forecast was a letdown.

“The guidance was actually good, pretty solid. But some investors’ expectations were clearly a little bit higher,” said Michael Genovese, analyst at Soleil Securities.

Juniper, which competes with much bigger Cisco Systems Inc (CSCO.O: Quote, Profile, Research, Stock Buzz) in selling routers and switches, forecast third-quarter earnings, excluding items, of 30 to 32 cents a share. Analysts on average expected 31 cents, according to Thomson Reuters I/B/E/S.

Genovese also cited disappointment over the lack of news on deals with the big carriers like AT&T Inc (T.N: Quote, Profile, Research, Stock Buzz) and Verizon Communications Inc (VZ.N: Quote, Profile, Research, Stock Buzz).

“In terms of news with Tier 1 customers, there was nothing,” he said. “I think they’re executing well … but there are negatives.”

For the second quarter, Juniper reported revenue of $978 million, up from $786 million a year earlier and above analysts’ expectations for $954 million. Its third-quarter revenue outlook of roughly $1.02 billion exceeded the market’s forecast of $993 million.