Cisco earnings show order slowdown

Cisco reported decent numbers for the current quarter but acknowledged the slowdown in orders that we predicted for the first half of this year. The company relies on enterprises for a large chunk of revenues, and that sector is very troubled by the credit crash and consumer concerns. We believe that spending for 2008 will recover in the second half. The slowdown will have its greatest impact on network vendors with a lot of enterprise exposure, but it will also make it difficult for Juniper to get quick traction with its new EX enterprise Ethernet line.