Cisco CEO: Don`t Freak Out About Weak Market

BARCELONA (Reuters) – Cisco Systems Inc ChiefExecutive John Chambers still thinks that tougher times may lieahead for network equipment spending, but says it’s nothing to"freak out" about.

At a media event on Monday during the Mobile World Congressin Barcelona, Chambers reiterated his comments last week thatbusiness executives are cautious, but suggested that sentimentcould soon turn.

"I hope to be here in three months saying I was wrong andit wasn’t much," he said. "We view it as a very shallowscenario and nothing to freak out about."

The comments from Chambers, typically among the most upbeattechnology executives on the global economy, come after he saidlast Wednesday that U.S. and European chief executives werebeing the most cautious he had seen in many years.

His comments, along with a disappointing revenue forecastfrom Cisco, had added jitters to a shaky market — and rockedhis company’s shares.

Chambers repeated on Monday that he expects a slowdown incorporate network equipment spending.

"If I thought (the downturn) was really long and reallydeep, I would say that to you," he said.

Cisco is the latest of a slew of technology companies thathave been raising warning flags about nervous consumers andbusinesses facing the threat of a recession.

(Reporting by Sinead Carew; Writing by Franklin Paul,editing by Dave Zimmerman)

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