Chambers sees US downturn continuing, spreading

LONDON: Cisco Systems Inc. chief executive John Chambers was quoted on Monday

as saying the US economic downturn would continue for at least three quarters

and that there were signs of it spreading.

The head of the number one maker of networking equipment for the Internet

told the Financial Times in an interview that the outlook for the US economy had

deteriorated significantly since Cisco warned in January that it expected the

downturn to last two quarters or more.

"Now we are saying that it will last for at least - at least - three

quarters," Chambers said. Chambers said the company had seen the issues

expand to Asia Pacific and that it saw the early signs in Europe. He urged US

government agencies to take more drastic remedial action.

Cisco saw its stock fall to a new 52-week low on Friday after analysts cut

earnings estimates because of the economic downturn.

The New Economy's bellwether stock dropped to $18-11/32 - below its previous

52-week low of $18-3/8 - before closing down $1-1/16, or 5.38 per cent, at

$18-11/16 on Nasdaq. It hit its all-time high of $82 last March.

(C) Reuters Limited 2001.